What You Need to Know About Prenuptial Agreements in New Jersey

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Though there was once a stigma attached to prenuptial agreements, this is no longer the case. That is why more and more couples across the country draft prenuptial agreements every single day. Please continue reading and speak with our knowledgeable New Jersey divorce attorney to learn more about prenuptial agreements and how our firm can help you and your spouse-to-be draft one. Here are some of the questions you may have:

What Is a Prenuptial Agreement?

A prenuptial agreement is a written contract between a couple before they are married. The primary purpose of this agreement is to determine how certain financial matters will be handled in the event of a divorce. This allows the couple to decide what property will remain separate and what will be considered marital property in order to divide their assets.

It’s important to understand that creating a prenuptial agreement does not mean you anticipate filing for divorce. This is simply a planning tool that can help provide peace of mind for both parties.

Why Do Ocean County Couples Create Prenups?

Couples across the state of New Jersey and throughout Ocean County draft prenuptial agreements for various reasons. Some of the most common reasons couples draft these agreements are as follows:

Protecting property owned before marriage
Protecting a business or business investments
Predetermine what will happen to their property in the event of a divorce
Setting expectations regarding alimony or spousal support
Protecting inheritances or family-owned property

How Does a Prenup Avoid Later Conflict?

A prenuptial agreement can help reduce conflict during a divorce, as there is a clear outline regarding who owns what in the event of a divorce. Having a prenuptial agreement can avoid one of the most contentious aspects of this process, property division, as there are clear expectations regarding how these matters will be handled.

What Can an NJ Prenuptial Agreement Include?

There are many matters that a New Jersey couple can include in their prenuptial agreement, so long as the contract is legally valid in accordance with the Uniform Premarital and Pre-Civil Union Agreement Act. This includes:

Classification of marital assets
How property will be divided in the event of a divorce
How the couple plans to handle any changes in value to assets
How spousal support and alimony will be handled
What will happen to any inheritances
How to handle certain debts that may exist or arise during the marriage

What a Prenup Cannot Include

Though there are a number of things that a prenuptial agreement can include, there are also a number of assets that cannot be included in this document, which include:

Child custody
Child support
Anything that encourages divorce (heavily rewarding a spouse for filing)
Terms that waive certain rights required by law
Grossly unfair terms

It’s important to understand that decisions regarding children cannot be predetermined, as the court is responsible for making decisions based on the best interests of the child at the time of the divorce.

What Are the Requirements for a Valid NJ Prenup?

Like all contracts, certain conditions must be met to ensure that a prenuptial agreement is legally binding. It’s imperative to understand that a prenup will only be beneficial if it is valid and enforceable in accordance with New Jersey law.

Basic Legal Requirements

The agreement must be in writing
Both parties must sign the agreement
The documents must be signed before the marriage
Each party should have their own attorney or the opportunity to consult one
The agreement must be entered into voluntarily
The terms of the agreement must be fair and conscionable

Full and Fair Financial Disclosure

Ensuring that both parties are fully transparent regarding their finances is critical. Without full financial disclosure, a prenuptial agreement can be found invalid.

Income from all sources
Assets (bank accounts, investments, life insurance policies)
Debts and liabilities (personal loans, credit card balances, student loans)

Working with an experienced Ocean County divorce attorney can help ensure that your disclosure is complete and properly documented to avoid issues at a later point.

Who Should Consider Creating a Prenup?

There is a common misconception that only the ultra-wealthy can benefit from creating a prenuptial agreement. In reality, there are many couples that may benefit from having a prenup in place before they are married, such as:

Those who own a business
Those with significant savings or investments
Those entering a second or subsequent marriage
Those with children from a prior relationship
Couples where one partner owns significantly more than the other
Couples who want peace of mind for the future.

Can We Create One After We Are Married?

If you are already married and you have not drafted a prenuptial agreement, you may still draft what is known as a postnuptial agreement. A postnup has the same purpose and legal requirements as a prenup, with the only difference being that it is signed after a couple is married. Common reasons you may wish to create a postnup include starting a business after marriage, receiving a large inheritance, or even purchasing new real estate.

Contact Our Experienced New Jersey Firm

Matters of divorce and family law require the attention and skill of an experienced attorney who will fight for your future. Not only is your financial well-being at stake, but in a divorce, both you and your children’s emotional well-being are at risk as well. If you need a divorce and family law attorney in Ocean County, New Jersey, please do not hesitate to contact the Law Office of Sarina Gianna, LLC today to schedule a consultation.