Prenuptial Agreements

A Prenuptial Agreement (Prenup) allows a couple to set clear terms regarding property rights before the marriage, thus heading off potential conflicts down the line. It’s important to remember that one party cannot impose a prenup on the other. Both parties must sign the agreement voluntarily. That said, there are a variety of ways Prenups can benefit both parties:

 

• Protect one party's assets

• Protect a party from assuming the debts of the other party

• Determine how property will be passed upon death

• Clarify financial rights and responsibilities during a marriage

• Avoid long, costly disputes in case of divorce

 

In the absence of a Prenuptial Agreement, it is up to the Court to apply Pennsylvania law in the event of property disputes during marriage or in the event of a divorce. For instance, both spouses are typically entitled to:

 

• Share and receive ownership of property acquired during the marriage

• Receive some of their spouse’s property upon death

• Share in any debts acquired during the marriage

• Share responsibilities in managing property acquired during the marriage.

 

Sometimes the best reason to draft a prenup is because state laws don’t adequately address the unique circumstances surrounding your marriage – for instance, you may want pre-marital property to pass to your children from a previous marriage instead of your new spouse upon your death.

 

Drafting an enforceable Prenuptial Agreement

While it makes sense to discuss the broad outlines of a Prenup with your spouse-to-be, once you have the structure in place, it’s in your best interests to have an attorney draft a final agreement that is clear, justifiable and legally enforceable. In the event of a divorce, the Court will carefully review any Prenuptial Agreement and has the authority to put the terms of the agreement aside if the Judge determines that it is unfair or does not strictly adhere to state law.

 

Post-Nuptial Agreements

Sometimes it can make sense to enter into a post-nuptial agreement that considers new circumstances around assets, income and property that arise during the marriage. A post-nuptial agreement particularly makes sense if you anticipate significant changes in one party’s income, property ownership or inheritances during your marriage.

 

Starting a conversation about pre- or post-nuptial agreements can be stressful, but in many cases it serves the interests of both parties. Liebmann Family Law can help facilitate that discussion in a way that helps take emotion out of the equation while ensuring an agreement that fairly addresses both parties’ needs.