Prenuptial Agreement

[TonyDown]

May I ask for input on executing a prenuptial agreement prior to marriage?

Specifically does anyone have direct experience with this subject matter?

I've already done internet searches and found lots of information.  So I'm not asking for anyone to do internet searches and report back. 

But if you have gone through the process and learned useful lessons, I would appreciate anything you might be willing to share. 

My goal is to be aware of risks and challenges and to have all my ducks in a row before contacting a lawyer.

[SouthOfTheBorder]

contact a lawyer first.  dont listen to any advice here.  

[pubic_assistance]

I married late in life so had significant wealth before I married.

Each state has a standard of expectations for the event that you would divorce with a prenuptial. So a lawyer does need to navigate you through all that part.

The emphasis is protecting wealth and property acquired before your marriage.

Income and property acquired after your marriage is viewed in most states as yours in common, not individual, no matter what you want. A prenuptial can declare it separate but beware... a judge can refute the justness of that agreement. So the most important thing to understand about a pre-nup is that you can't just decide what you want without a judge changing the terms to meet the standards of the state.

The main focus after a divorce is providing some equity in lifestyle for a period of time. So expect to be on the hook for a sizable sum if there's a disparity between you and your partner's income.

Overall unless you have children or property in common that would be inherited and you want to avoid inheritance tax I don't see the point of marriage. Pre-nups don't protect you from a messy divorce.

[+ augustus]

Have a practicing divorce attorney represent you when writing your prenup. They’ll know what to include, what could come up and most importantly what a court would actually enforce.

[Bokomaru]

I assume you realize that your future spouse must have an attorney as well? 

One mistake I made was not thinking far enough into the future. I have a large asset that’s protected, but should I liquidate, the proceeds could become common property. That’s something I (or my attorney) should have foreseen.
 

I also raised the question of alimony. Although it didn’t really pertain to the prenup in my state, it’s a serious matter, and as mentioned above, every state is different. In addition, I’ve always wondered, what if we move elsewhere? Would my alimony responsibilities be very different? I don’t know if a prenup can head off this problem. Worth asking about….

[+ APPLE1]

On 5/29/2024 at 9:36 AM, Bokomaru said:

Although it didn’t really pertain to the prenup in my state

That's a significant statement. Marriages, and their terms, are a state controlled contracts. Likewise, the dissolution of those contract terms (divorce) are also state controlled.

I would ask a lot of questions about the effects if both of us, or one of us, moves  to another state and how it may affect the prenup. Especially if I live in a small state, or on the boarder. It certainly isn't unheard of for spouses to separate, then one moves just a little ways to another jurisdiction, establishes residency, and ends up filing for divorce.

Edited June 1 by APPLE1

[TonyDown]

On 5/26/2024 at 6:06 AM, pubic_assistance said:

I married late in life so had significant wealth before I married.

Each state has a standard of expectations for the event that you would divorce with a prenuptial. So a lawyer does need to navigate you through all that part.

The emphasis is protecting wealth and property acquired before your marriage.

Income and property acquired after your marriage is viewed in most states as yours in common, not individual, no matter what you want. A prenuptial can declare it separate but beware... a judge can refute the justness of that agreement. So the most important thing to understand about a pre-nup is that you can't just decide what you want without a judge changing the terms to meet the standards of the state.

The main focus after a divorce is providing some equity in lifestyle for a period of time. So expect to be on the hook for a sizable sum if there's a disparity between you and your partner's income.

Overall unless you have children or property in common that would be inherited and you want to avoid inheritance tax I don't see the point of marriage. Pre-nups don't protect you from a messy divorce.

My financial planner reminded me that marriage would help avoid inheritance taxes when I pass.  I have no children so I intend to leave my assets to my partner.

My strategy is leaving equity to my partner, if we divorce, while avoiding his claiming an undo portion.  

Of course he is uncomfortable discussing it but I know better.  At least I assume so.

[pubic_assistance]

34 minutes ago, TonyDown said:

My financial planner reminded me that marriage would help avoid inheritance taxes when I pass. 

Yes. Correct. Inheritance tax can prevent a life partner from staying in your shared home if that's the major part of the inheritance and there are no other funds to pay the tax.

[Colton]

On 5/29/2024 at 10:36 AM, Bokomaru said:

One mistake I made was not thinking far enough into the future. I have a large asset that’s protected, but should I liquidate, the proceeds could become common property.

As long as the proceeds are kept separate and not commingled with your common assets, you should be able to protect the proceeds.  But speak to a lawyer for how it works in your state.