Prenuptial & Post Nuptial Agreements
Prenuptial and Postnuptial agreements are contracts entered into to address the financial aspects of marriage. The purpose is to protect assets in the unfortunate event of a divorce or death.
A premarital agreement, also known as premarital contract, prenuptial agreement, or prenup, is an arrangement made by two single individuals as they anticipate some events in their future marriage. It is a formal written contract signed by both future spouses.
Pennsylvania Statutes differentiate a unilateral release from a premarital agreement. A unilateral release is the waive of rights to pursue claims. It is effective upon signing. On the other hand, a premarital agreement involves mutual promises made by future spouses as well as the relinquishing of rights effective in the event of divorce or death. It only becomes an effective agreement if two individuals marry one another.
A Postnuptial Agreement is a contract entered into after two people marry. It is similar to a prenuptial agreement except it is signed during marriage. The purpose of this agreement is to establish the respective property and support rights should the couple divorce. A Postnuptial is entered into in contemplation of an ongoing, viable marriage. An example of when someone may want to enter into a Postnuptial is if they just received or are about to receive a large inheritance. When starting a business you may also want to consider a Postnuptial Agreement to protect your business and business partners from the unfortunate circumstance of death or divorce.
Pittsburgh Pre-Marital Agreements
A premarital agreement serves as a security of marriage against relevant issues in the event of divorce and other unlikely situations. Typically, premarital agreements involve protecting financial assets and ownership of the spouses.
Approximately 50% of marriages in the United States end up in divorce proceedings. A premarital legal agreement prior to marriage establishes the financial and property rights of each party. Practically, it is wise to consider having it before engaging in matrimony. Also, it protects family businesses and serves other functions in a union.
The legal documents will mainly be used to 1) keep a spouse from taking on the debts of the other; 2) secure the property of one spouse; 3) determine how the assets of a spouse will be passed on to another after death; 4) simplify the asset division during the process of divorce, and 5) clarify the financial obligations of each spouse.
Issues Covered by Premarital Agreement in Pennsylvania
A premarital agreement addresses various issues involved in a marriage. It can settle financial liabilities during the marriage, asset, property, and debt division upon divorce or death, and alimony upon divorce.
Married couples have different needs and problems encountered during the marriage. A premarital agreement is not a size that fits all. The good news is, couples can tailor it according to their personal preferences. Marital concerns covered by a prenuptial agreement in Pennsylvania include but are not limited to the following:
- The right of a spouse to own the property of the other spouse
- The right of a spouse to use, buy, sell, and spend resources of the other during the marriage
- The right of each spouse to the inheritance or possessions of the other
- The asset and debts division should the married couple divorce or if a spouse dies
- The entitlement of a spouse to alimony and spousal support
- The entitlement of a spouse to death benefits of the other’s insurance policy
- The operation of a family business
- All concerns agreed upon by the couple
Prenups can deal with a wide scope of marital problems except for the following issues:
Child Custody & Support
Upbringing of the Children in a Religious Way
Provisional Alimony Provided While the Divorce Proceeding is Ongoing
Why a Prenup May be Right for You
Making a prenuptial agreement with your future spouse offers benefits both for you and your imminent marriage. Consider the following explanations in answering why a prenup may be right for you.
You will be able to protect your personal belongings by documenting one another’s separate assets. You will be able to support your estate plan as well. If you don’t want the involvement of the court in terms of asset division, you can make that happen. Also, you can have a distinction between marital and community property.
You will be allowed to make a document and provide details regarding the special arrangements that you have with your future spouse. Once both of you have already signed the prenup agreement, you will be able to avoid long court hearings. It also reduces conflicts in the process of divorce. You will be prepared should problems arise in the future due to pre-established rules and procedures for varying issues.
Finally, you will not be liable for debts and purchases that your partner made. Medical fees, estate loans, educational expenses, and mortgages will be assigned to the spouse responsible for all this.
Hire a Premarital Agreement Attorney Now
Sometimes, couples think they don’t need to make premarital agreements because they trust that their relationship will not encounter serious marital issues that would make them want to get a divorce. Yet, others have said the same thing prior to the wedding. And here they are, set up for something worse than a disaster because of marital dispute; hence, filing for a divorce.
Making this agreement does not mean you are pessimistic about your future marriage with your partner, but it secures both of the lives that are ahead of you. Make the right choice today! Premarital agreement attorneys from Voelker & Morris will conduct the procedures positively. They will use their expertise to make things work in your favor.