No one gets engaged or married thinking that their marriage will end in divorced, but we all know that divorce is an unfortunate reality. Given the inherent uncertainty that comes with marriage, it is important to take steps to mitigate this financial risk for you and your family. A prenuptial or postnuptial agreement, in conjunction with an estate plan focused on asset protection, can help clients mitigate the financial risk of marriage.Prenuptial Agreements
There are several instances in which couples may want to execute a prenuptial agreement before getting married. Couples who have children from a previous marriage or relationship often want to execute a prenuptial agreement to preserve assets for their children in the event of death or divorce. Individuals with significant family assets who are interested in shielding those assets from a divorcing spouse and keeping the assets in the family line also will encourage their children to execute a prenuptial agreement before tying the knot. Similarly, in couples where there is a significant income disparity between the parties, the higher earning spouse may be interested in protecting that income in the event of divorce.Postnuptial Agreements
Postnuptial agreements are similar to a prenuptial agreement, except they are executed after the parties are already married – often when tensions arise during the marriage, but the parties wish to remain married. While similar in practice to a prenuptial agreement, postnuptial agreements are held to a different standard when a party seeks to enforce them in the Probate & Family Court, so it is important to use a practitioner who has experience in drafting these nuanced documents.
If you are engaged to be married or recently tied the knot without a prenuptial agreement, contact us
today to learn more about how you can proactively take the necessary steps to protecting yourself and your loved ones.