A prenup is an agreement made in contemplation of marriage that defines certain rights and obligations of the respective parties during the prospective marriage, in the event of a termination of the marriage, or upon the parties’ death.
Why You May Need a Prenup
Here are five common reasons why you may need a prenup:
- You have substantial assets you want to protect.
- You want to protect a business that you own.
- You already own a house in your name and want to protect that ownership.
- You want to protect your retirement accounts.
- You want to limit the amount of alimony you would have to pay.
Protecting your assets
You can protect your assets by hiring an attorney to prepare a prenuptial agreement. However, make sure that the spouse signing away rights in the prenup has a full understanding of your net worth.
Financial disclosure matters
The easiest way for a spouse to set aside a prenup is by claiming there was no financial disclosure. This can be satisfied by preparing a certificate of compliance with mandatory disclosure, or by submitting a detailed statement of your net worth prepared by your CPA.
Timing matters
It is also important to prepare the prenup well in advance of the wedding. The closer the prenup is signed to the wedding, the better the argument for the spouse to say that he or she was pressured into signing it at the last minute.
Independent legal counsel helps
It is better if the signing spouse also has an attorney. That way, he or she cannot argue that he or she did not understand the document, or that he or she was pressured or coerced into signing it.
When a prenup may not hold up in court
A prenup may not hold up in court if:
- It was not voluntary.
- It was the product of fraud, duress, coercion, or overreaching.
- It was unconscionable when it was signed.
- Before it was signed, there was not fair and reasonable disclosure of property and financial obligations.
- The party did not voluntarily and expressly waive, in writing, any right to disclosure of the property and financial obligations of the other party beyond the disclosure provided.
- The party did not have, or reasonably could not have had, adequate knowledge of the property or financial obligations of the other party.
If you are in need of finding out more about a prenup, or having one prepared, you may contact Ann Marie Gilden, Esquire of Ann Marie Giordano Gilden, P.A. at 407-732-7620 for an initial consultation.