A prenuptial agreement is a marital contract negotiated before couples marry. Engaged people may spend weeks finessing the language and negotiating the terms that they decide to include in their prenuptial agreements. For many couples, prenuptial agreements serve as a deterrent to divorce and help create stronger marriages. People are less likely to romanticize the process when they have already negotiated exactly what might happen at the end of a marriage.
For others, prenuptial agreements serve as a key protection from the worst possible divorce outcomes. What role does a prenuptial agreement typically play during divorce proceedings?
Establishing separate property
Frequently, people include provisions in prenuptial agreements earmarking specific assets as separate property. Perhaps one spouse had received an inheritance or anticipated one at the time of their marriage. Maybe they already had a successful professional practice. The agreement can designate certain assets as separate property, which means spouses don’t have to negotiate the division of those assets when they divorce.
Setting standards for asset division
The assets that are subject to division can be difficult to address. The state’s equitable distribution statute is open to interpretation. People may have wildly different ideas about what is a fair outcome as they prepare for divorce. A prenuptial agreement can establish clear standards regarding the exact approach that spouses should take when dividing their marital property.
Providing guidelines for alimony
Alimony, which people sometimes call spousal maintenance or support, serves a critical role after divorce. It allows a spouse who made economic sacrifices for the family to rebuild themselves financially and live independently. Prenuptial agreements can set terms for when alimony is appropriate, how much it might be and how long it could last.
Generally speaking, the main role of a prenuptial agreement in a New Jersey divorce is to facilitate an uncontested divorce filing. Litigation is only necessary in scenarios where one spouse insists the agreement is invalid due to unusual circumstances. A prenuptial agreement can help keep the overall costs of divorce low.
It is common for people to misunderstand or misremember the terms included in a prenuptial agreement after years of marriage. Reviewing a prenuptial agreement with a skilled legal team before filing for divorce can help people understand what to expect. It can be much easier to plan for the future when people have a clear idea of what property they may retain and what financial obligations they may need to grapple with after a divorce.