What are Importance of Prenuptial Agreements
With most of the marital assets in his ex-wife’s name, Harry Macklowe was forced to sell prime Manhattan real estate to pay off his debt. The couple is now clashing over control of a one-billion-dollar art collection. Towson divorce lawyers ask how could a couple with so many assets neglect to protect themselves with a prenuptial agreement?
Prenuptial agreements are invaluable for protecting the livelihood of both spouses entering marriage, especially in cases wherein the stakes – or assets – are high. Divorce is rife with emotion – even when both parties agree it is the best option. When feelings are running high, and ex-spouses react out of anger and pain, pre-nuptial agreements can help dissolve assets equitably.
What is a Prenuptial Agreement?
A prenuptial agreement is a contract made by a couple before they marry, addressing the division of their assets and other financial concerns should the marriage end. The foresight a prenup provides can eliminate long and painful litigation if the marriage does not work out. Prenuptial agreements are private contracts drafted by attorneys, enforceable in court.
For couples who maintain a variety of valuable assets, the divorce process may be more complicated than usual. High asset divorce attorneys need to dig deep to determine if assets existed before the marriage or were acquired afterwards. Alimony will be determined based upon what each spouse contributed to the partnership. Even though one spouse may have brought in more income, the other may have contributed and supported the other by being an exceptional homemaker.
When high asset divorces involve a great deal of expensive properties, vehicles, and other assets, the costs involved in maintaining those should be considered. Spouses that lobby for vacation homes, for example, should be prepared to pay mortgage, tax, and maintenance fees on them. Divorcing couples need to be realistic on how their lifestyle might change after their marriage ends.
The key to a satisfactory outcome in a high asset divorce is how you approach it. Acting out of anger and resentment can alienate your ex-spouse and drag the process out longer than necessary. Having a prenuptial agreement in place makes the process less complicated.