Does a Prenup Protect Future Assets?
It is probably safe to assume that a conversation about a prenup is not what most people want to think about. After all, none of us think we will be in a position to actually need to know what a prenup protects, and how it works, especially after we’ve just committed to the person we love for the rest of our lives. Unfortunately, things do not always work out, and life does not always go the way we planned.
If you are in a position where you need to start looking at the prenup you have either drawn up or signed, you may have questions. One of the biggest questions involves whether a prenup will protect future assets. If this describes a situation you are in, read on, as we will discuss whether a prenup protects future assets.
What is a Prenup?
The first order of business is defining what a prenup or a prenuptial agreement is. A prenup is a signed contract between you and your spouse, listing all of the property you each own individually, and the property you will each own individually if the marriage ends. It is filed before you get married.
What Assets does a Prenup Protect?
A prenup can protect both small and large assets, such as cars, jewelry, real estate, and family heirlooms. They also outline specific instances that could arise in a marriage. For instance, it could lay out what would happen if one spouse cheats on the other.
There are also things a prenup does not protect, such as agreements on child support. These are most often determined in the courts.
Can a Prenup Protect Future Assets?
So, can a prenup protect future assets? The answer is yes, with a caveat. In order to protect a future asset, the prenup must describe in detail what the future asset will be. Otherwise, a judge may be able to dismiss any vague language surrounding a future asset, especially if it does not outline specifically who will have ownership of the asset.
A well-drafted prenup will protect future earnings, as well. For instance, if one of the spouses has just started a business, the income at the time of marriage may not be substantial. However, if the spouse expects the business to take off, it can be written into the prenup that future income would be protected, should the marriage not survive. This can also apply if one spouse expects to take over a family business or another substantial asset in the future. Advanced planning can go a long way toward protecting future assets.
While a prenup may protect future assets and income, it may also help avoid future debt. The prenup can address each spouse’s potential liabilities, and ensure one spouse’s debts do not become the responsibility of the other spouse. If the husband in a marriage incurs credit card debt, it will be peace of mind for the wife that she will not have to take on that debt, if the marriage ends in divorce, and is clearly defined in the prenup.
Planning a well-drafted prenup is not the most romantic thing for a couple to consider who is going to get married. It brings up the possibility of unpleasant situations and creates a path forward should the marriage not work out. However, it is incredibly practical to have a plan in place to protect both your assets and your spouse’s assets. It may even smooth over the divorce, and allow for a swift resolution.
Contact The Mattar Firm
If you are getting married, and wondering what you should do in terms of a prenuptial agreement, it may be worth consulting with an asset protection attorney at The Mattar Firm, who can guide you through the process. Contact us today at, 239-222-2222.