Clement Law

Pre-Nuptial Agreements

A pre-nuptial agreement could prevent litigation in the event the marriage ends in divorce. On the other hand, a difficult negotiation may end the relationship before a marriage takes place.

Pre-nuptial agreements are no longer an exclusive financial risk management tool for Hollywood couples. Having seen what can happen when a high-profile relationship fails, increasing numbers of less famous couples are known to be opting for written agreements to protect the financial assets each partner brings to the relationship.

Some of the advantages of such an agreement are: to protect your separate property; support your estate plan; it defines what property is considered marital property or community property; it reduces conflicts and saves money if you divorce; it clarifies special agreements between you, and it establish procedures and ground rules for deciding future matters.

But, of course the whole idea of a pre-nup is far from romantic. What follows of pre-nuptial agreement considerations:

Reasons for a Pre-nuptial Agreement
• A premarital agreement can protect the inheritance rights of children and grandchildren from
   a previous marriage.
• If you have your own business or professional practice, a premarital agreement can protect
   that interest so that the business or practice is not divided and subject to the control or
   involvement of your former spouse upon divorce.
• If one spouse has significantly more debt than the other, a premarital agreement can protect
   the debt-free spouse from having to assume the obligations of the other.
• If you plan to give up a lucrative career after the marriage, a premarital agreement can ensure
   that you will be compensated for that sacrifice if the marriage does not last.
• A premarital agreement can address more than the financial aspects of marriage, and can
   cover any of the details of decision-making and responsibility sharing to which the parties
   agree in advance.
• A premarital agreement can limit the amount of spousal support that one spouse will have to
   pay the other upon divorce.
• A premarital agreement can protect the financial interests of older persons, persons who are
   entering into second or subsequent marriages, and persons with substantial wealth.

Reasons Against a Pre-nuptial Agreement
• The agreement may require you to give up your right to inherit from your spouse's estate
   when he or she dies. Under the law, you are entitled to a portion of the estate even if your
   spouse does not include such a provision in his or her will.
• If you contribute to the continuing success and growth of your spouse's business or
   professional practice by entertaining clients and taking care of the home, etc., thus allowing
   him or her to focus on professional endeavors, you may not be entitled to claim a share of
   the increase in value if you agree otherwise in a premarital agreement.
• It can be difficult to project into the future about how potential issues should be handled,
   and what may seem like an inconsequential compromise in the romantic premarital period
   may seem more monumental and burdensome in reality.
• A low- or non-wage-earning spouse may not be able to sustain the lifestyle to which he or
   she has become accustomed during the marriage if the agreement substantially limits the
   amount of spousal support to which that spouse is entitled.
• In the "honeymoon" stage of a relationship, one spouse may agree to terms that are not in
   his or her best interests because he or she is "too in love" to be concerned about the financial
   aspects and can't imagine the union coming to an untimely end.
• Starting a relationship with a contract that sets forth the particulars of what will happen upon
   death or divorce can engender a sense of lack of trust.
• The biggest negative is that a prenuptial agreement can take the wind out of your emotional
   sails.


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Divorce Annulment Equitable Distribution Maintenance Alimony Agreements Child Custody Child Support Collaborative Law Pre-Nuptial Post-Nuptial Separation Pre-Nuptial Agreements A pre-nuptial agreement could prevent litigation in the event the marriage ends in divorce. On the other hand, a difficult negotiation may end the relationship before a marriage takes place. Pre-nuptial agreements are no longer an exclusive financial risk management tool for Hollywood couples. Having seen what can happen when a high-profile relationship fails, increasing numbers of less famous couples are known to be opting for written agreements to protect the financial assets each partner brings to the relationship. Some of the advantages of such an agreement are: to protect your separate property; support your estate plan; it defines what property is considered marital property or community property; it reduces conflicts and saves money if you divorce; it clarifies special agreements between you, and it establish procedures and ground rules for deciding future matters. But, of course the whole idea of a pre-nup is far from romantic. What follows of pre-nuptial agreement considerations: Reasons for a Pre-nuptial Agreement • A premarital agreement can protect the inheritance rights of children and grandchildren from a previous marriage. • If you have your own business or professional practice, a premarital agreement can protect that interest so that the business or practice is not divided and subject to the control or involvement of your former spouse upon divorce. • If one spouse has significantly more debt than the other, a premarital agreement can protect the debt-free spouse from having to assume the obligations of the other. • If you plan to give up a lucrative career after the marriage, a premarital agreement can ensure that you will be compensated for that sacrifice if the marriage does not last. • A premarital agreement can address more than the financial aspects of marriage, and can cover any of the details of decision-making and responsibility sharing to which the parties agree in advance. • A premarital agreement can limit the amount of spousal support that one spouse will have to pay the other upon divorce. • A premarital agreement can protect the financial interests of older persons, persons who are entering into second or subsequent marriages, and persons with substantial wealth. Reasons Against a Pre-nuptial Agreement • The agreement may require you to give up your right to inherit from your spouse's estate when he or she dies. Under the law, you are entitled to a portion of the estate even if your spouse does not include such a provision in his or her will. • If you contribute to the continuing success and growth of your spouse's business or professional practice by entertaining clients and taking care of the home, etc., thus allowing him or her to focus on professional endeavors, you may not be entitled to claim a share of the increase in value if you agree otherwise in a premarital agreement. • It can be difficult to project into the future about how potential issues should be handled, and what may seem like an inconsequential compromise in the romantic premarital period may seem more monumental and burdensome in reality. • A low- or non-wage-earning spouse may not be able to sustain the lifestyle to which he or she has become accustomed during the marriage if the agreement substantially limits the amount of spousal support to which that spouse is entitled. • In the "honeymoon" stage of a relationship, one spouse may agree to terms that are not in his or her best interests because he or she is "too in love" to be concerned about the financial aspects and can't imagine the union coming to an untimely end. • Starting a relationship with a contract that sets forth the particulars of what will happen upon death or divorce can engender a sense of lack of trust. • The biggest negative is that a prenuptial agreement can take the wind out of your emotional sails.