A prenuptial agreement is a legal document drafted prior to marriage which spells out agreements arrived upon by the parties, prior to the marriage, as to how certain properties and assets shall be divided in the event of dissolution of marriage.
Post-nuptial agreement is a legal document drafted after the parties been married, or entered into a civil union and which spells out agreements, arrived upon by the parties, after the marriage, as to how certain properties and assets shall be divided in the event of a dissolution proceeding. It may also be utilized to spell out the disposition of a single asset or circumstances.
There are several advantages to having a pre-nuptial or post-nuptial agreement, most specifically the relief of knowing that there will be no disagreement regarding the specific items which it addresses.
While it may seem undesirable to contemplate the end of a marriage before it has even begun, planning ahead with a pre-nuptial agreement can serve to protect and clarify party’s intentions prior to entering into marriage. There are many situations that could dictate a pre-nuptial agreement to be beneficial, including:
- You own a small business
- You have a financial interest/ownership in a family business
- You have pre-marital career assets, such as a 401K or profit sharing
- You own a pre-marital home, investment or vacation property
- You have children from a previous marriage
- You will be caring for elderly family members
- You have an inheritance