Premarital agreements, also called prenuptial agreements, are not romantic. In fact, they are contracts that are put into place to help resolve future conflicts between individuals who have not even formalized their relationships in marriage. However, there are many good reasons why New Jersey residents may want to enter into premarital agreements before they say “I do”.
One reason relates to the amount of property or wealth that a person amasses before they get married. A person with significant financial assets or business wealth may want a premarital agreement to identify and keep their separate property under their exclusive control in the event that they go through a divorce. In some cases, separate property may be converted into marital property and be subject to division if it is not identified as separate in a valid premarital agreement.
Another reason that a person may want a prenuptial agreement is if their soon-to-be spouse will enter their marriage with significant debts and liabilities. Just as a person’s assets may become marital property after a wedding, so too can their debts become shared with their spouse. In order to insulate one from the liabilities of their significant other, a premarital agreement may be used to keep those debts separate.
There are a multitude of other reasons that people may want to create premarital agreements, and those specific and personal reasons can be discussed with their trusted family law attorneys. Different couples will need different terms in their agreements to protect their own unique interests and needs. A family law and divorce attorney can provide them with the information they require to develop their own premarital contracts.