What is a Prenuptial Agreement?

A prenuptial agreement is a contract created by two spouses prior to their marriage to decide privately between themselves how the property will be distributed in the event of a divorce. If there is a divorce, the prenuptial agreement is a way to ensure that there will be less court costs and fees. New York State and other states have specific laws on how property is distributed in a dissolution of a marriage and what maintenance requirements are.

Prior to a marriage it is advisable for each spouse to hire an attorney to come to terms and draft an agreement. A prenuptial agreement categorizes property as marital property or individual property.

In the state of New York to create a valid prenuptial agreement, the parties need to disclose their financials to each other which includes income, assets, debts and other financial factors. A lack of proper financial disclosures can invalidate a prenuptial agreement.

The benefit of a prenuptial agreement is that the parties can decide on what their Estate Rights, Wills and Revocable Living Trusts, maintenance payments, debts and pensions look like in the event of a divorce.

Please reach out to us if you have further questions about prenuptial agreements and if you would like to schedule a consultation.