Premarital Agreements: Should Someone Really Get Half for saying "I do"?

Most would agree that marriage should be about love, partnership and romance, and that divorce should not be about protracted litigation wars, hassles and associated financial hardship. In today's world, roughly 30% of first marriages and 50% of all marriages end in divorce. So, when modern couples, rich or not, address marriage and finances (i.e., divorce and death), an intelligent starting-point is a premarital agreement to control and protect their privacy, emotional harmony and assets.

A prenuptial agreement allows couples planning to marry more input and control regarding marital issues such as "what is a fair division" thereby lessening the interference of third parties and the courts. Furthermore, parents and business owners may require prenuptial agreements (as well as post-nuptial agreements) to mitigate the risks of marriage upon a child's inheritance or a co-owner's business interests. The control, freedom and privacy provided by premarital agreements should be a cherished and protected default starting point.

By logically and sincerely addressing marriage and financial issues while the parties are more likely to be calm and rational, that is, preferably earlier in the relationship and while not in the irrational throws of a contested divorce proceeding or post death probate or trust contest, couples may be able to attain more control by proactively working together to answer fundamental questions before any potential problems occurs. The bottom-line is that addressing important questions ahead of time likely equates to less wasted money, time and energy if a breakdown later occurs.

Marital agreements can be used as both a sword or as a shield and may be considered when:

1. Parents desire to protect the inheritances of children, grandchildren and other descendants.

2. Business owners desire to protect their business by mandating co-owners to attain premarital (or post-nuptial) agreements before vesting in a business interest (i.e., stock, LLC units, partnership interests, etc.).

3. One party has more assets than the other.

4. One party has more debt than the other. 

5. The richer party desires to confirm that the motive to marry is truly for love.

6. The less rich party desires to dispel any doubts of richer spouse regarding motives for marriage.

7. The less rich party desires to attain minimum amounts to be received if the marriage fails or the richer spouse dies. 

8. One party attains an inheritance or lottery winnings.

9. There is a desire to protect a family business, stocks, or residence.

10. There is a desire to protect children or grandchildren of a previous marriage.

11. One party is starting up a lucrative business venture.

12. One party is starting up a lucrative career. 

13. Either or both of the parties have previously suffered a divorce.

14. One party is supporting the other party through college or professional school. 

If you are considering a premarital agreement, please call us at 847-382-9130 or email us at attorneys@kelleherbuckley.com  to speak with one of our attorneys.  We also appreciate your referrals.