Prenup Agreement

How to Bring Up the Delicate Topic of a Prenup to Your Fiancée

Prenup and Prenups in ManhattanAccording to a survey conducted by the American Academy of Matrimonial Lawyers, more couples than ever before are signing a prenup before they say, "I do."

Despite this prevalence, prenuptial agreements remain a touchy subject. Some people just feel that they are unromantic while others believe that the suggestion of such an agreement is an admission of a lack of faith in the union. However, prenups may be entered into for numerous reasons, and they can be a loving way to plan your financial future. Here are some tips for bringing up this topic with your fiancée.

Difficult as it may be, it's best to mention that you are interested in prenuptial agreements as early as possible. Attorneys suggest broaching the topic in a casual way even before the engagement. This will help you to gauge your partner's initial reaction, which may suggest how carefully you will need to proceed.

Similarly, it's helpful to realize that an in-depth conversation about a prenup with your fiancée is likely to be awkward. The best way to deal with this is by being open and honest about your reasons for wanting a prenuptial agreement. For instance, you might mention the history of painful divorces in your family.

You further might emphasize that you expect your marriage to end with one of your deaths at the end of a long and happy life. However, if things don't turn out that way, you want to be able to go your separate ways with as much love and as little rancor as possible. A prenuptial agreement lets the two of you decide complex financial questions long before they ever arise, and that can make for a swifter, less painful divorce.

Couples frequently find success when they make drafting the prenuptial agreement a joint project. This ensures that both of their voices are heard and that they have equal input with regard to the stipulations. Both spouses can accordingly understand that their interests are protected in case the marriage doesn't go as planned. Many couples decide to work with a mediator or an attorney to iron out the specifics so that both partners feel greater peace of mind.

Contact Sabra Law Group at (646) 472-7971 to schedule your complimentary discovery session to talk about any of your questions about entering into a prenup with your fiancée. A well-crafted agreement is a loving way to demonstrate that you care about your partner's future, whatever it holds.

 

How Prenups Can Be Quite Revealing About Your Future Mate

Prenup and Prenups in ManhattanSome people are shocked when their intended spouse suggests that they enter into a prenuptial agreement. They may think that the only people who get prenups are the ones who don't have much faith in their relationship.

The reverse typically is true. People have many reasons for wanting a prenup, but these often boil down to wanting to protect themselves and their partner. Prenups protect both parties because they are thoughtful, fair and carefully considered. They settle potentially acrimonious questions long before they might arise, and they also teach you a great deal about your chosen partner.

Drafting a prenuptial agreement requires that both parties participate in an in-depth discussion of their personal finances and ideas and goals for their future. This may sound surprising, but many couples don't have any critical discussions about finances before they marry. After the ceremony, one or both may receive unpleasant shocks as they slowly learn about each other's financial reality and the way they interact with money.

Negotiating the terms of a prenup will have both parties revealing their debts and assets. Did you know that your partner has more than $30,000 in student loan debt? Does your partner know that you had massive medical bills that went to collections three years ago? What about family heirlooms? Do you or your future spouse have a valuable possession that needs to be safeguarded in the event of a separation? Did you know that your partner wants to relocate to another state or another country in the next year or two? Or after a child is born?

All of these things and more are likely to come up as you discuss the terms of your prenup. Additional items that may be included in such an agreement may relate to any children you have and your outlook on future earnings. Did you know that your future spouse expects to be a stay-at-home parent? How might that affect your family's financial outlook, especially in the event of a divorce? Do you want to make special provisions for spousal support or child support?

What are each of your intentions regarding the transfer of assets upon death?  Do either of you intend to keep your assets in your family, giving it to siblings and other relatives, rather than to your spouse?  How will you each provide for each other in the event of premature death? How would that impact where you live and the ability of the survivor of you to continue to reside in the marital residence in the event that the other is no longer able to contribute financially to the household? 

Admittedly, all of these financial and family-related topics can be extremely sensitive. Rather than seeing this as just a stressful exercise, think of it as a gift. This is an opportunity for the two of you to get out in the open your most fundamental beliefs and expectations regarding family and money, and you're doing it before you get married.

This means you have a chance to see where you're on the same page, and where compromise is required. To learn more, contact the Sabra Law Group at (646) 472-7971.

 

Why Prenups Are The Norm for Millennials

Prenups for MillennialsThe stories have been in the media lately. Millennials are requesting prenups before tying the knot in record numbers.

Why is this younger generation much more open to the idea of prenups? Several factors may be at play.

According to the American Academy of Matrimonial Lawyers, a full 62 percent of attorneys have noticed that more of their clients are asking for prenuptial agreements within the last three years.

One of the main reasons behind this increase is that this generation is tending to wait until later in life to get married. This may mean that they have more assets to protect.

Putting off marriage gives them a chance to focus on their careers. This means that they have a chance to build up their 401(k) or to aggregate wealth through an employer's stock program. Perhaps they will buy some real estate.

In the event of a divorce, the spouse or spouses who have accumulated considerable assets before marriage may want to safeguard those assets for themselves.

However, this is just one more reason why it makes sense to have a prenuptial agreement in place. Such an agreement can protect a spouse from having to assume responsibility for a sizable debt that doesn't really belong to them in the event that they get a divorce.

Frequently, this age group also is deferring marriage because of its financial obligations. With student loan debt at record highs, millennials may be reluctant to saddle a spouse with such a heavy responsibility.

Debts from credit cards or personal loans also may put a strain on a relationship. Consequently, the couple may want to specify in a prenuptial agreement that the debt belonging to one spouse or the other remains that individual's responsibility should a split occur.

Other millennials are choosing prenuptial agreements because they are themselves the children of divorce. After suffering the pain of watching their parents go through a difficult process, they may be seeking to protect themselves from a similar situation.

All of these factors combine to explain why this particular generation is beginning to see prenuptial agreements as the norm rather than the exception. It's a wise choice, one that could protect the financial and emotional future of both parties and any children they may have.

To learn more about why people are choosing prenups to protect themselves and their families, call the Sabra Law Group at (646) 472-7971.  Or, if you know you are ready, call now to get started.

 

Why Divorce Doesn’t Have to Be a Financial Disaster

Financial DisasterMany pressing concerns arise when divorce is on the horizon. Children are the primary focus, but it is nearly as vital to concentrate on financial concerns. The more stable and predictable your economic security is, the better able you'll be to take care of yourself and your children.

Regardless of whether your divorce is acrimonious or not, it's important to give early consideration to financial matters. This typically involves opening personal banking accounts that are in your name only. Accordingly, your former spouse won't have access to any funds in these accounts. It is advisable to inform your spouse about the new banking accounts simply so that you cannot be accused of hiding money.

If you and your spouse have joint credit accounts, now is an excellent time to close them. You can always decide how to divide any outstanding debts through divorce mediation.

Additionally, if there are joint investment accounts, you might consider withdrawing half the money, reserving the other half for your spouse. Other couples decide to require the signature of both parties on any transactions dealing with an investment account. This ensures that no one has an opportunity to hide funds.

Many divorcing couples further decide to get their own post office boxes as they go through the divorce process. In the event of an acrimonious divorce, it's not unusual for one spouse to hide correspondence from the other. The result could be missed bill payments and other money-related chaos.

The best way to prevent money from complicating a divorce is to sign a thoughtful prenuptial agreement before tying the knot. These contracts can be highly customized to reflect your family's unique circumstances. They may address who is responsible for student loan debt and who gets your grandmother's antique clock if the marriage doesn't last.

A prenuptial agreement may include provisions for the support of a non-working spouse in the event of a divorce. This may include alimony payments and other considerations that are left to the discretion of the couple.

Each family's situation is unique. A well-written prenup takes this into account. In fact, it may be the primary means of protecting your money, and it can be revised to reflect your changing economic status.

If you are ready to learn more about how you can protect yourself from a financial standpoint in the event of a divorce, contact the Sabra Law Group at (646) 472-7971.

 

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.