Prenuptial Agreements as a Form of Marriage Planning

Amazon owner Jeff Bezos and media personality Lauren Sánchez wed in Venice, Italy, in a multi-day event. As one of the richest men in the world, Bezos likely had a prenuptial agreement to protect his companies and assets, worth $237billion. Although few people will ever be as rich as Bezos, a prenuptial agreement can still help protect spouses in their marriage.

Money is often the greatest threat to a marriage. One in four married couples report that money is their greatest challenge, and about 45% admit to arguing about finances. A nuptial agreement, whether prenuptial or postnuptial, can help married couples plan for the future and work out boundaries for their happily ever after.

Prenuptial agreements are becoming more widespread – about 15% of Americans who are engaged or married have signed one. Raising a prenuptial agreement is always a delicate matter. Nobody wants to believe they are entering into a marriage with a partner who is already contemplating divorce. 

Nuptial agreements, whether prenuptial or postnuptial, work best when there is a dramatic change in wealth or potential income for one spouse. Sudden imbalanced incomes may come from a business venture or a large inheritance.

A nuptial agreement may also help create boundaries. This is especially important if infidelity impacts a marriage, but the spouses still want to preserve the marriage. Conversely, a nuptial agreement can also help with planning for children from a prior marriage.

Common Features of a Prenuptial Agreement

Transparency

Nuptial agreements require that both spouses fully disclose their assets and debts. Both parties must understand what they’re agreeing to; otherwise, the contract could be rendered invalid. Transparency is essential not just for planning division in the event a marriage doesn’t work, but can also help promote transparency within the marriage. Estate planning can also be easier if couples are aware of each other’s assets. 

Division of Assets and Debts

A nuptial agreement can determine how assets and debts acquired before and during the marriage will be divided if the marriage ends. Assets can include real estate, bank accounts, stock options, and personal possessions. Likewise, student loans or business debts can be segregated to one spouse if a marriage ends.

Spousal Support

A nuptial agreement can state if one party is to receive financial support post-divorce. Details could include the amount and the duration. A pre or postnuptial agreement may be able to modify or even waive spousal support obligations in the event of a divorce, though the final terms would depend on the spouses’ financial circumstances at the time of divorce. 

Child Custody Arrangements

Some nuptial agreements can set out child custody arrangements in the event of a divorce. Be sure to check with an attorney beforehand, though, as some state laws may invalidate such agreements if the custody is not based on the child’s best interests at the time of the divorce. Most states will not recognize child support agreements in pre or postnuptial agreements. Child support is for the children, so spouses typically cannot modify or waive a parent’s obligation to support their minor children.

Most fiancées and spouses will not take discussions regarding a nuptial agreement lightly. However, healthy communication and transparency are often the cornerstones of a successful marriage. At the very least, a prenuptial or postnuptial agreement can test and strengthen a couple’s ability to communicate for a successful marriage.

Do I Need a Lawyer for My Family Law Issue?

If you are having difficulty getting your divorce finalized, you should contact a family lawyer today. A skilled family lawyer can answer your questions, provide guidance on your case, and represent your best interests in court.