There’s been a lot of buzz in the past few days about the “pet prenup” – happy to see this in the news just days after our last blog post! Pets are increasingly becoming a part of couples’ prenuptial agreements, because although a pet is often considered a part of the family, a pet is treated as an asset in a property division. And like a piece of art or a house, pets are often used as bargaining chips in a separation. You give this, you get that…more or less.
Couples are increasingly opting to sign prenups…a wise decision and smart move, for MANY reasons. Not because couples anticipate a failed marriage. Not because people don’t trust their future spouse. But…as the marriage age is creeping up, so is the accumulation of assets and other sorts of wealth acquired by individuals prior to entering a marriage. People entering modern marriages often have pre-marriage business interests, larger retirements accounts than in years past, and in the United States, people also have more significant debt.**
A prenuptial agreement functions to protect both spouses in the event of an unfortunate end to a marriage. How many times have we heard a friend say he or she was in complete shock when divorce papers were served? Even a quick internet search returns results showing people are interested in learning how to file for divorce without a spouse knowing beforehand. At the end of the day, no person can ever know what will happen tomorrow, two years, or ten years from now…and when the going gets rough and divorce gets emotional and irrational, divorcing spouses are known to deny the existence of assets or even fight over a spatula.
However, a prenuptial agreement should never be thought of as a pre-divorce contract, nor is it a tool to adopt in anticipation of having leverage in future disagreements. Instead, a prenuptial agreement is a tool that facilitates pre-marriage communication. Prenups force couple to engage in necessary discussions about financial expectations during the marriage, about spousal and family support during future growth of the family, and about taking on and handling future debts, among other things. A prenup enables these conversations, encourages them to occur when couples are happy and excited about the future, anticipating a long and successful marriage before the fighting has begun.
A prenuptial agreement is a modern, proactive tool all couples should strongly consider, as it fosters complete disclosure and peace of mind, and in the event of an unfortunate separation, provides a roadmap for a less conflicted divorce with no fighting over the spatula or the dog.
**Student debt follows the debtor in the event of a separation, but a prenup can specify that any marital assets used to pay off one party’s student debt during the course of the marriage must be taken into consideration in the property division.
Any person planning to marry or divorce, regardless of income or assets, should seek the assistance of appropriate legal and tax advisors. Work with Linnane & Associates to plan for your life and marriage goals. Consider pre-marriage counseling…consult us for some guidance.
Kathleen Linnane is the Managing Partner of Linnane & Associates. Check back for our weekly blog updates about current legal issues of interest, and how changes and updates to the law might affect you and your community.