Articles

Family Law

Prenuptial Agreements

You Can Still Protect Your Assets In The Event Of A Divorce Without A Prenuptial Agreement July-Aug-00

                       It is not unusual in the current economy for a person to have acquired significant assets prior to his or her marriage as the result of stock options, owning an interest in a growing, closely held business or through the formation of a professional practice.  Nor is it unusual to desire to protect those same assets in the event of a divorce. Additionally, persons who are entering second marriages may have acquired a significant estate which they wish to leave to their children from the first marriage.  The best way to protect these assets is to have the person’s future spouse execute a prenuptial agreement setting forth the spouse’s rights in the parties’ assets in the event of a divorce or death.  The problem, however, is that many people feel squeamish about asking their future spouse to execute such an agreement because of the possible chilling effect it may have on their relationship. 

                         There are several steps that can be taken to protect assets you have acquired prior to and after your marriage even without a prenuptial agreement:

*     Keep all assets acquired prior to marriage in an account or title in your name only.  This will preserve the asset’s status as non-marital property, not subject to the claims of your future spouse.

*     Keep any gifts made personally to you or inheritance received during the marriage in an account in your name only.  Gifts and inheritance received during a marriage are considered non-marital property as long as they are not commingled with marital assets.

*     Do not commingle marital assets – certain assets acquired during the marriage –with non-marital assets.  

*     If you own stock in a closely held business, keep the stock in your name and have a buy-sell agreement with the company and/or a succession plan in the event of your death or disability.

Attorney to Contact

• Jerome F. Crotty
• Douglas C. Conover