If you are thinking about getting married, you should consider whether you have assets that you want to preserve and protect in the event of a divorce. If you own your practice, have saved substantially through your 401(k), have deferred compensation accumulated, own commercial or real property, or inherited assets from family members, you should think about a prenuptial agreement, or if you have already married, consider a postnuptial agreement to protect those assets.
Prenuptial and postnuptial agreements generally abbreviate or waive rights one spouse might be entitled to receive in the event of divorce or death. For example, if you purchased your home prior to getting married, and are paying down the mortgage with your current income, and you do not have a prenuptial agreement designating the home as a non-marital asset and your income as non-marital income, your spouse may be entitled to a portion of the value of the house in the event of a divorce. Protecting your home or other assets can happen through a prenuptial or postnuptial agreement.
In addition to protecting assets you already own, prenuptial agreements can abbreviate or waive rights to alimony or spousal support and attorneys’ fees and costs. Entering into a prenuptial agreement and agreeing upon a waiver of alimony or attorneys’ fees and costs or designating a certain amount of alimony or attorneys’ fees and costs you are willing to pay ensures that you can predict what your alimony and attorney fee obligations are in the event of a divorce and allows you to have predictability in preserving your future income.
