Premarital Agreements in Estate Planning

What do prenuptial agreements have to do with my estate planning? 

Prenuptial agreements, also known as prenups, premarital, or ante-nuptial agreements, are generally created to protect your assets in the event of a divorce. However, a prenuptial agreement also allows you to ensure your wishes are followed after your death. The premarital agreement does this by allowing you to designate “separate” property (rather than marital or joint property) and specifies the waiver of certain marital rights such as the spousal election - the right of the spouse to a share of the deceased spouse’s estate - that would otherwise be applicable if the prenuptial agreement was not in place.

So when is a prenuptial agreement necessary?

Prenuptial agreements are necessary for protecting assets that were yours before marriage and certain assets accumulated during marriage. Most couples decide to sign prenuptial agreements for many reasons such as…

• Protecting a party’s business (especially family)

• Protecting a party’s inheritance or trust

• Protecting assets meant for any children from previous relationships

• Establish what each party inherits from each others estates

• Establish the method for dividing premarital assets 

• Establish the method for division of assets that are joint or may become joint assets in the future.

It’s important to note that on prenuptial agreements, you cannot give up your rights to pay or receive child support and you cannot diminish responsibility to care for your children.

While the above benefits are clear, there is the obvious concern about broaching the subject of the premarital agreement with your spouse-to-be. It’s not exactly a great conversation to have with the person who you intend on sharing the rest of your life with. In other words, no one wants to bring up the fact that they could potentially get divorced at some point in the future while planning or getting ready for a wedding that is supposed to signify their everlasting love for one another. 

For that reason, most clients do not consider a premarital agreement unless it is a second marriage scenario (in which case, the person has already experienced first hand how costly a divorce can be).

If you are curious to learn more about prenuptial agreements in the context of your estate planning, then give me a call at (781) 202-6368 or email me at JLento@PerennialTrust.com.

I’m always happy to help.

Sincerely, 

Joseph M. Lento, J.D.
Attorney & Owner of Perennial Estate Planning