Prenuptial and Postnuptial Agreements
In New York, prenuptial and postnuptial agreements can be used to define the financial terms of their relationship before and after marriage. Such agreements can help prevent potential conflicts in the event of divorce or separation. Understanding how these contracts work, the requirements for validity, and their key provisions is crucial for couples looking to safeguard their individual assets or establish a mutual financial understanding.
Prenuptial Agreements
A prenuptial agreement is an agreement entered into before the marriage takes place, whose purpose is to establish the financial rights and obligations of each party in the event of divorce or separation. It can also address how marital property will be divided and whether spousal support (alimony) will be awarded.
Why People Enter into a Prenuptial Agreement
- Asset Protection: Individuals with significant premarital assets, a family inheritance, or business interests may want to protect these assets from being divided in a divorce.
- Debt Protection: A prenup can ensure that one spouse does not assume liability for the other spouse’s pre-marital debts.
- Clarity in Financial Expectations: Some couples want clear guidelines regarding financial roles and responsibilities during the marriage.
- Second Marriages: In the case of a second marriage, one or both spouses may wish to protect pre-marital assets intended for children from a prior relationship.
Postnuptial Agreements
A postnuptial agreement is similar to a prenuptial agreement, except it is entered into after the couple has already married.
Why People Enter into a Postnuptial Agreement
- Changing Financial Circumstances: Couples may enter into a postnuptial agreement when their financial circumstances change after marriage.
- Strengthening the Marriage: Couples sometimes enter into a postnuptial agreement to resolve an ongoing dispute over finances and to avoid any future conflicts.
Key Elements of Valid Prenuptial and Postnuptial Agreements
For a prenuptial/postnuptial agreement to be valid and enforceable, the agreement must meet the following criteria:
- Written and Signed: The agreement must be in writing and signed by both parties.
- Notarized: The signatures must be acknowledged by a notary public to be legally binding.
- Full Disclosure: Each party must fully disclose their assets and liabilities. Any attempt to hide information could invalidate the agreement.
- Voluntary Agreement: The agreement must be entered into voluntarily. Coercion, fraud, or undue pressure could render it unenforceable.
- Fairness: The agreement must not be unconscionable. Although courts generally enforce such agreements, they will not enforce an agreement that is deemed grossly unfair to one party.
Issues That Can Be Addressed in Premarital and Postnuptial Agreements
- Division of Property: Couples can agree to the division of property (both marital and separate) in the event of divorce.
- Spousal Support: Prenuptial and postnuptial agreements can address spousal support, including whether it will be paid and how much.
- Debts and Liabilities: The agreement can dictate which party is responsible for pre-marriage and post-marriage debts.
- Inheritance and Estate Planning: These agreements can be used to protect family inheritances or set aside assets for children from previous marriages.
- Business Interests: Such agreements can be used to protect one’s interest in a business or to keep it separate from marital property.
Issues that Cannot be Addressed in a Premarital or Postnuptial Agreement
- Child Support and Custody: Prenuptial and postnuptial agreements in New York cannot include provisions regarding child support or child custody.
- Unconscionability: Courts may invalidate parts or the entirety of an agreement if it is deemed unconscionable.
- Public Policy: Provisions that are deemed against public policy may be invalidated.
Premarital and postnuptial agreements in New York provide couples with the ability to clarify financial expectations and protect their personal interests. But, these agreements must be carefully drafted to ensure that they comply with New York’s legal standards for enforceability.