When do you need a Prenuptial Agreement?

A Prenuptial Agreement is an agreement which couples use to determine how their assets will be divided in the event of a divorce. You may want to consider a prenuptial agreement if you….

1. Have a separate property family business: With a prenuptial agreement, you can draft an agreement to prevent your spouse from acquiring an interest in the appreciation of your separate property business. Otherwise, your spouse may be entitled to half of the value of the business.

2. Have substantial separate property assets: Similarly, if you own separate property assets such as real estate, you may want to draft language in a prenuptial agreement which safeguards your separate property interest in the appreciation of the property.

3. Have children from a prior relationship: You may also want to consider drafting a prenuptial agreement if you have children from a prior relationship. In addition to a will or trust, a prenuptial agreement can back up the terms of your will by delineating the assets you do not wish your spouse to inherit upon your death.