NYC Prenup Attorneys
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Prenuptial Agreements in NYC: What You Need to Know Before Saying “I Do”
CONGRATULATIONS! You finally found Mr. or Ms. Right, the person with whom you’re hoping to spend the rest of your life. You’re excitedly planning your dream wedding in the Big Apple. Amidst the whirlwind of picking out flowers, sampling cake flavors, and finding the perfect dress or tux, there‘s an important (albeit less romantic) discussion you and your beloved should have before walking down the aisle – whether or not to get a prenuptial agreement.You may have heard of, or yourself experienced, horror-divorce stories. They seem to be prevalent and ubiquitous nowadays. Prenuptial agreements – commonly known as “prenups” – have emerged as a way for couples to protect themselves and their assets in case the marriage doesn’t end up being the “‘til death do us part” fairy tale they envisioned. But what exactly are prenups? How do they work in New York City? And most importantly – are they right for you and your partner?
What is a Prenuptial Agreement?
A prenuptial agreement is a legal contract that an engaged couple signs before they get married. It outlines what will happen to their finances – their assets (what you own) and liabilities (what you owe) – during the marriage and in the event of a divorce. Essentially, it allows you and your partner to decide in advance how you‘ll divide your property if you split up, rather than leaving it in the hands of the court.Some key things a prenup can cover include:
- What property (real estate, bank accounts, investments, etc.) is considered separate property (belonging to just one spouse) vs. marital property (belonging to both spouses)
- How marital property will be divided in a divorce
- Whether one spouse will pay alimony (spousal support) to the other, and if so, how much and for how long
- What happens to property upon the death of one spouse
- How marital debts will be paid off in a divorce
It’s important to note that prenups cannot include provisions related to child custody or child support. Those determinations are always made by the court based on the best interests of the child at the time of the divorce.
Pros and Cons of Prenups
Like most major life decisions, getting a prenup has its advantages and disadvantages. Let’s take a look at some of the most common pros and cons.
Pros
- Protects premarital assets: If you’re entering the marriage with significant assets, like a home, investment portfolio, or business, a prenup ensures that those assets will remain yours if you divorce.
- Protects you from your spouse’s debts: Without a prenup, you could be on the hook for debts your spouse acquired before marriage. A prenup can specify that each spouse is responsible for their own premarital debts.
- Avoids long, costly legal battles in divorce: By spelling out how things will be divided in advance, a prenup can help you avoid a drawn-out, expensive court battle if you do split up. You’ve essentially decided how to divvy things up while you still like each other!
- Fosters financial transparency: The process of drafting a prenup requires both partners to fully disclose their finances to each other. This transparency sets a solid foundation of trust and openness around money matters as you enter the marriage.
- Allows you to override state law: Each state has its own laws about how property is divided in a divorce. In New York, the law provides for “equitable distribution” of marital assets, which may not be a 50/50 split. With a prenup, you and your partner get to decide what feels fair to you, rather than being at the mercy of state law.
Cons
- Can be emotionally taxing: Let’s face it – talking about what will happen if you divorce before you’ve even said “I do” can put a damper on your engagement bliss. It requires you to have some difficult, often uncomfortable conversations about money and the potential for your marriage to fail.
- May indicate a lack of trust: Some people feel that wanting a prenup suggests that you don’t fully trust your partner or have faith in the marriage. It can send the message that you’re already thinking about divorce.
- Can be costly: While a prenup is likely to save you money in the long run if you do divorce, the upfront cost to have the agreement professionally drafted can be significant. Attorneys typically charge by the hour, and you’ll need to hire separate attorneys to represent each of your interests.
- Doesn’t account for changes in circumstances: A prenup is drafted based on your current financial situation. But a lot can change over the course of a marriage – you could have children, switch careers, inherit money, develop health issues. Your prenup may not account for those changes and may need to be updated.
- May not be enforceable: While courts generally uphold prenups, there are some circumstances in which a prenup may be deemed invalid, such as if it wasn’t signed voluntarily, contains false information, or is extremely unfair to one spouse. If your agreement is thrown out, you’re back at the mercy of state law.
Do You Need a Prenup?
So now that you know the basics of prenups, the million dollar question is – do you and your partner need one? The answer is…it depends. Every couple‘s situation is unique, but here are some scenarios where a prenup may be particularly beneficial:
- One or both of you is entering the marriage with significant assets or debts
- One or both of you owns a business
- One of you plans to quit your job to raise children
- You have children from a previous marriage and want to ensure certain assets are preserved for them
- One of you expects a large inheritance
- You have vastly different income levels or financial philosophies
Ultimately, the decision to get a prenup is a deeply personal one that you and your partner will need to make together. It‘s not about planning for your marriage to fail – it‘s about being proactive, communicating openly about your finances, and protecting yourselves and your assets just in case.
How to Get a Prenup in NYC
If you’ve decided a prenup is right for you, it’s crucial that you do it right to ensure the agreement is legally valid and enforceable. Here are the key steps to getting a prenup in New York City:
- Each hire your own attorney: Prenups are complex legal documents. To ensure your rights and interests are fully protected, you and your partner will need to be represented by separate attorneys. If you use the same attorney, a court could find that the agreement is invalid due to a conflict of interest.
- Fully disclose your finances: For a prenup to be enforceable, both parties must fully and accurately disclose all of their assets, debts, and income. Failing to disclose or providing false information can invalidate the entire agreement. Your attorneys will guide you through the disclosure process.
- Negotiate the terms: With the help of your attorneys, you and your partner will negotiate the specific terms of your prenup. This can involve some back and forth until you reach an agreement you’re both comfortable with. Be prepared to compromise.
- Put it in writing: Your attorneys will draft the written prenuptial agreement, ensuring it complies with New York law. They’ll also make sure the language is clear and unambiguous to avoid any confusion or misinterpretation down the road.
- Review and sign: Once the prenup is drafted, carefully review it with your attorney to make sure you fully understand and agree to all provisions. If you’re happy with it, you and your partner will sign the agreement in front of a notary public. In New York, a prenup must be signed at least 60 days before the wedding to be considered valid.
It’s important to start the prenup process well before your wedding date to ensure there‘s enough time to properly negotiate and draft the agreement. Trying to rush it through at the last minute increases the risk of mistakes and the prenup being challenged in court.