If you or your soon-to-be spouse are bringing significant assets into your planned marriage, you may wish to consider taking a proactive step to protect your finances in the event of a divorce. Before exchanging wedding vows, you and your future spouse may sign a prenuptial agreement to confirm certain assets as your separate and individual properties. When a divorce proceeds without a prenuptial agreement, New Jersey’s laws generally classify assets as jointly owned property subject to an equitable division.
A prenup created and signed with no apparent or alleged assertions of coercion may avoid a lengthy court battle over assets if your marriage dissolves. A family court judge generally upholds the terms of a negotiated prenup during a divorce proceeding. As noted by Business Insider, this is one of the main benefits of a prenup. It legally specifies property division in advance rather than leaving it up to a divorce court judge.
What types of assets may I protect through a prenuptial agreement?
Your prenup may cover assets such as ownership of a business, investments, retirement accounts or property such as a home, vehicles or other valuables. Your agreement may also include verbiage to protect your normally recognized individual assets, such as inheritance funds. If your spouse accumulates a high debt load during your marriage, a judge might otherwise order you to cover part of your spouse’s installment debt or a student loan.
What other post-divorce financial issues may I cover?
If you plan to raise a family, your prenup may cover details regarding child custody, education costs, and support payments. A thoughtful look ahead at issues that might affect life as either a single parent or a noncustodial parent paying child support may have a significant impact on your personal finances and current holdings.
