What is a Prenup?

A prenuptial agreement, “Prenup” or “PNA,” is an agreement that is entered into between you and your intended spouse before marriage. Typically, it spells out certain rights upon divorce, death, or separation.

Prenuptial agreements can be effective planning tools that can aid you in avoiding disputes and costly litigation in the unfortunate event of divorce. By fixing your interests, rights and claims, the agreement can serve as an effective way to build predictability of outcomes. Sometimes individuals in second marriages want to find ways to protect their children from other relationships financially. There are also financial reasons to protect assets if one partner has significantly more assets than the other, if one spouse is an active manager of his or her own investments, or importantly, if there is a small business involved. On the other side, if one partner is bringing in substantial debts to a marriage, this may also be considered.

But beware…While many couples today recognize the benefits of a prenup, if not communicated carefully, it could cause relationship problems. For this reason (and others) we recommend careful communication about these issues, and when there’s potential trouble, prompt communication or mediation to come to an amicable agreement before it gets out of hand.

Don’t do this alone. It is especially important to retain an attorney who is skilled in drafting such agreements which are governed by the Uniform Premarital and Pre-Civil Union Agreement Act, N.J.S.A. 37:2-31 to 41. The enforce-ability of such Prenups is dependent upon several factors such as: voluntariness; a full and fair disclosure of each party’s earnings, property, and financial obligations; consultation with independent legal counsel (absent a written waiver of same); and a writing executed by both parties.

The family lawyers at DCS are experienced in negotiating and drafting prenuptial agreements as well as aiding clients in a constructive way that is sensitive to preserving the relationship. Our attorneys have experience on the other side as well; in moving to set aside agreements that do not meet the statutory requirements. We recognize that your circumstances are unique, as is every relationship. We are here to help you in protecting your interests.

Nicole Huckerby, Esq.
Dennigan Cahill Smith, LLC

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