Prenup Agreement

Why Having a Prenup Beats Having Separate Bank Accounts in a Divorce

Prenup AgreementMore couples are deciding to maintain separate bank accounts when they marry. They may have a variety of logical reasons for doing so. However, too many of them do so because they believe that it will protect them in the event of a divorce.

The reality is that these couples need a prenup if they are serious about safeguarding their separate bank accounts should the marriage dissolve. Meeting with an experienced attorney before the marriage ceremony is a reliable method for these couples to have all of their questions answered so that they can make informed decisions.

Couples may have a variety of motives for keeping their finances separate. Some of them have vastly different philosophies when it comes to how to handle money. Others are wary of comingling their finances because they watched the difficult process of their own parents splitting up. Because they may have seen their parents endlessly wrangling over assets and finances, they think that keeping their finances separate will prevent them from encountering a similar situation.

Accordingly, many engaged couples plan to maintain the status quo after tying the knot. Each one believes that if their bank account is only in their name, then it won't be subject to the division of assets in the event of a divorce.

While having separate finances while married may reduce conflicts, it is of little or no help for keeping money separate in a divorce. Equitable distribution and community property laws are designed to ensure the fair distribution of money and assets when a couple parts ways. However, an attorney who knows their business may argue that any assets acquired during the course of the marriage by either spouse should be considered (and in New York, is considered) marital property. This means that it is subject to equitable distribution, regardless of whose name is on the account.

The best and easiest way to ensure that both spouses receive all of the contents of their personal bank accounts in the event of a divorce is to have a prenup. This common-sense agreement allows the couple to agree in advance how their assets, money and real property will be divided should their union ever fall apart.

If you believe that you may need a prenup, then contact the Sabra Law Group at (646) 472-7971. Consulting with a matrimonial attorney is an excellent way to explore your finances and learn how both of you can protect yourselves.

 

If You Are Planning a Wedding in Manhattan, You Should Budget for a Prenup As Well

Planning a wedding in Manhattan is a massive undertaking. In order to secure the right venues for the ceremony and reception, many couples begin planning months or even more than one year in advance.

It's easy to get caught up in all of the details like finding an officiant, choosing a song for the couple's first dance and deciding who will be the maid of honor. Nonetheless, this also is a critical time for planning what will happen after the wedding.

Statistics demonstrate that many couples are waiting until later in life to get married. Moreover, individuals are now more likely to be marrying for a second or third time. This means that each partner may bring to the union a variety of debts, obligations, and responsibilities as well as considerable assets. Such circumstances may make it wise to consider entering into a prenup before a wedding in Manhattan.

A prenup is a contract that identifies all of the assets and property that each partner brings to the marriage. It also defines who will retain ownership of those assets should the marriage be dissolved. Similarly, these contracts also may spell out terms for dealing with debts acquired before or during the marriage.

While not romantic, a prenuptial agreement is a valuable financial planning tool, especially for couples who are bringing property or other assets into the marriage. As the years go by and events pile up, memories of who owns what and who is entitled to which benefits can become murky. Having a prenuptial agreement ensures that there is a document in which the couple's intentions are crystal clear. In the event of a dissolution when emotions are running high, the prenuptial agreement is a dispassionate witness that may remove some of the acrimony from the proceedings.

When no prenuptial agreement is in place, then the distribution of debts and assets in a dissolution may be guided by the state's laws. The law likely will dictate that marital property be divided equally, and this may even apply to property acquired before the marriage if a prenuptial agreement is not entered into. People who want to protect family heirlooms or other valuable items will quickly see how critical such a contract can be.

If you are planning a wedding in Manhattan and are curious about having a prenup drafted before the ceremony, contact the Sabra Law Group at (646) 472-7971 and get started now.