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Do I need a Premarital Agreement?

On Behalf of | Apr 1, 2014 | Prenuptial Agreements, Uncategorized

The decision on whether or not to pursue a Premarital Agreement with your fiancé can be complicated and the benefits of a Premarital Agreement can be significant depending upon the financial situations of both parties.  Generally speaking, in the event that a marriage ends in a divorce, an individual can greatly benefit from a Premarital Agreement which treats certain assets that they had before they were married and assets then acquired during marriage as their separate property as opposed to community property.  This can particularly be true with respect to an individual that owns real estate prior to marriage that is secured with a loan on which payments will be made by the parties during marriage.  A Premarital Agreement can also significantly protect an individual who owns a business prior to marriage in which that individual is going to actively devote his or her time, skill and effort.

In addition, if it is anticipated that, in the event of a divorce, someone might have significant spousal support exposure due to a significant disparity in the parties’ incomes and/or overall financial net worth, such an individual can significantly benefit from a Premarital Agreement. More particularly, potential protection can include either with a waiver of spousal support or reasonable limits on support.

Kenneth T. Demmerle