Are Prenuptial Agreements Always Enforced?

In New York, a prenuptial agreement must satisfy several requirements to be considered valid. Not only must the agreement be property executed, but it must be fair and reasonable at the time the couple entered into the agreement. A prenuptial agreement may be declared invalid because of duress or, alternatively, fraud, such as when one spouse deliberating misstates his or her financial situation or purposely hides assets.

However, if a prenuptial agreement avoids these potential pitfalls, you can use one to do many things, including:

• Determine how you and your spouse will divide property should your marriage end in divorce
• Determine whether either spouse will pay alimony or spousal support following divorce
• Protect your business and related property
• Protect your retirement account or pension

While some couples also include provisions pertaining to child support within their prenuptial agreements, a court is not necessarily bound by them. In fact, even though the court will consider the agreement, it has discretion when it comes to child support.

Pros of having a prenuptial agreement include but are not limited to:

Peace of mind that should your marriage come to an end many contentious issues can be resolved amicably.

A prenuptial agreement can protect the inheritance rights of children and grandchildren from previous marriages.

If you own a business or practice a prenuptial agreement can ensure it is not divided and subject to the control or involvement of your former spouse after divorce.

If one spouse has significantly more debt than the other, a prenuptial agreement can protect the debt-free spouse from having to assume the obligations of the other.

Sometimes, depending on the state, a prenuptial agreement can limit the amount of spousal support that one spouse will have to pay the other upon divorce.

Cons of having a prenuptial 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 of your spouse’s business or professional practice you may not be entitled to claim a share of the increase in value of those assets if you agree otherwise in a prenuptial agreement. Under the laws of many states, this increase in value would be considered divisible marital property.

Starting a relationship with a contract that sets forth the particulars of what will happen upon death or divorce can sometimes lead to a lack of trust among some couples.

Sometimes couples in their initial stages of their relationships can agree to forgo certain financial rights without truly considering the ramifications down the line. This is part of the reason that seeking professional legal advice is strongly recommended.

Contact Us Today

If you have questions about either drafting or disputing a prenuptial agreement, check out our prenuptial agreement checklist or contact us today to speak with a knowledgeable attorney. With an office in Garden City, New York, we represent clients throughout Long Island and the surrounding areas. You can reach us online or call us at 516-280-8880. We offer initial consultations.