Whether it is before or after their big day, couples often have conversations about their finances.
Possible division of assets, such as money or property, are important topics to discuss with your partner.
As their names indicate, a prenuptial agreement is established before getting married, and a postnuptial agreement is entered into by two people who are already married, no matter the amount of time. While you may never intend to get a divorce, having a binding legal document, such as a prenuptial or postnuptial agreement, can help lessen the stress and complexity of future financial issues or discussions.
4 Assets Prenuptial and Postnuptial Agreements Cover
The following are four assets that prenuptial and postnuptial agreements can help protect.
Asset #1: Marital Property
Marital property generally includes property that was acquired during the marriage, but it may also include any additional value added to existing assets. For example, if one partner owned a home before the marriage, but the couple invested money into the house together, the equity gained from those improvements can be considered marital property.
Also, in Florida, holding property in the name of one spouse only generally does not provide protection from that property being considered martial property. Rather, all property, including homes, cars, and the like, acquired during a marriage may be considered marital property. A pre or postnuptial agreement can help couples to choose to designate certain property, whether it is acquired prior to marriage or even during the marriage, as separate property in the event that a couple were to later divorce, or so that each spouse may dispose of their separate property as they wish in the event of their death.
Asset #2: Retirement Benefits
Similar to marital property, retirement savings obtained during the marriage can also be considered marital property during a divorce. Pre and postnuptial agreements can help you protect these assets.
They can also cover pensions and clearly define how pension funds should be divided and/or managed after a divorce.
Asset #3: Children’s Property
If you have children from a previous marriage, pre and postnuptial agreements can also help protect your children’s inheritance in the event of a divorce. However, it is important to note that pre and postnuptial agreements cannot govern future custody matters.
Asset #4: Life insurance benefits
If any member of a married couple has a life insurance policy that they wish to have managed a specific way in the event of their death, pre and postnuptial agreements can help protect these assets posthumously.
Hiring an Attorney to Draft Your Prenuptial or Postnuptial Agreement
Hiring an attorney to draft your prenuptial or postnuptial agreement or review one that is presented to you is in your best interest. They can help you ensure the agreement is legally binding and in your best interests.
Contact our team at Apfelbaum Law to learn how we can help you create an agreement that protects you and your assets long-term.
