A prenuptial agreement is made between two prospective newlyweds to set the ground rules of financial obligations and dividends should divorce or death do them part. According to Philadelphia family law and divorce attorney, Dorothy Phillips, here are not one, but two, handfuls of reasons to consider the need for a prenup before strutting down the aisle.
1. To protect children from a previous marriage.
2. To protect a family business or pre-marital assets.
3. To protect current personal property – home, pension, stock, etc.
4. To protect future inheritances and gifts.
5. To avoid property disputes in the event of death – business, stock, pensions, copyrights.
6. Protect from partner’s pre-marriage credit card debt and/or loans.
7. If you are wealthier than your soon-to-be.
8. If you hope to be a stay-at-home.
It’s wise to have an attorney draft a prenuptial agreement to ensure all has been accounted for appropriately since family law requirements differ from state to state. Pennsylvania and New Jersey, despite their close proximity prove as a great model of the incongruities. For example, PA's laws are a bit more forgiving than NJ's. Pennsylvania is better for a breadwinner since not much other than "full and fair disclosure" of all assets is required by the state for a prenuptial agreement to be valid. Tax returns should be attached to the prenup, as well as a list of assets and approximate value.
On the flip side, NJ requires a much more in depth report. New Jersey is extremely stringent and makes all protections available. If you’re dependent, New Jersey is the place to be. The state views one’s income and assets when the challenge to the prenuptial agreement is made, not at the time of the agreement's execution. In NJ, the ex-husband would be required to make compensation to his wife based on income and assets at the time of challenge of the prenup, but in PA, he is not required to do so.
Regardless of your hometown, appreciated value of property will be included in marital assets if not mentioned in the exclusions clause. Those pretty exclusions should include property owned prior to marriage, property you know is coming your way and inheritances. “Gather exclusions then say, other than these anything acquired during marriage is marital property," advises Phillips.
Moral of the story: No matter where you live, the more specific the agreement the better, regardless of what the home state requires – especially if it’s your assets which are on the line.
About Dorothy Phillips
Phillips received her B.S. from the University of Pennsylvania, her M.A. from New York University and her J.D. from Villanova University School of Law. Phillips and her expert opinion have been featured on ABC, NBC, CBS, CNN, in the Wall Street Journal, the Philadelphia Inquirer, Harper’s Bazaar, and Philadelphia Magazine. She is recognized as one of the Top 50 Female Attorneys in Philadelphia. Dorothy K. Phillips & Associates serve from three offices throughout Pennsylvania and New Jersey. www.mydivorceattorney.com. (215) 568-7757.
Nicole Courides - Courides received her bachelor's degree in Journalism/PR from Rider University in 2009, and currently works as a freelance writer when not ...
