What is a prenuptial agreement?
A prenuptial agreement is a contract setting forth the financial rights and obligations between two parties in contemplation of marriage. A couple may opt to execute a prenuptial agreement to protect their interests in the event of divorce, i.e. where one party may have substantial assets earned prior to the marriage; either or both parties have children from prior relationships. A prenuptial agreement can also be used for estate planning purposes. The prenuptial agreement must be in writing and signed by both parties and acknowledged or proven in the manner required to entitle a deed to be recorded. It may be amended or revoked after marriage only by a written agreement signed by the parties. A prenuptial agreement may include provisions for the ownership, division or distribution of separate or marital property, provisions for the amount and duration of maintenance or other terms and conditions of marriage relationship, provided that such terms and conditions were fair and reasonable
A prenuptial agreement is also known as premarital agreement or an ante-nuptial agreement. This type of agreement may be used by a couple to determine, prior to marriage, what each party’s rights and obligations will be in the event of divorce. Premarital agreements are governed by the Uniform Premarital Agreement Act, N.J.S.A. 37:2-31 et. seq. The agreement must be in writing and it must have a statement of assets attached to it. It becomes effective upon the marriage of the parties. Premarital agreements are entered into by prospective husbands and wives before they get married. If a premarital agreement is properly drafted, then they can save the parties significant emotional and financial expense if they get divorced.
A prenuptial agreement is entered into between two people who intend to marry. It typically identifies the assets and liabilities that each party will bring to the marriage, identification of how children will be cared for if this not a first marriage, and how joint assets or liabilities acquired during the marriage will be treated. Most importantly, the prenuptial agreement specifies how joint property, individual assets and/or financial obligations will be handled in the event that the marriage ends in divorce. A prenuptial agreement gives doctors, dentists and medical residents a greater level of control in planning for their family’s future.
Prenuptial agreements are contracts entered into between people planning to get married. The purpose of the agreement is to define for the couple what the disposition of their financial assets will be in the event of divorce or death. In order to be valid they must be executed prior to the wedding. Both parties should have legal counsel and there needs to be a full financial disclosure of all assets of the parties. The agreement will ordinarily be enforced if it is executed properly and there is no fraud or duress involved in its execution. There is case law that suggests that if a prenuptial agreement is signed immediately prior to the wedding that could be evidence of duress. The courts in Massachusetts have also ruled that if at the time the agreement is sought to be enforced, a “second look” would take place to make sure that the agreement is not unconscionable in light of the circumstances at the time you are seeking to enforce it.
