Preventive Family Law for Nevada

Prenuptial Agreements Improve the Likelihood of a Successful Marriage

PRWeb recently reported a new study by Heather Mahar of the Harvard Law Group in which Ms. Mahar concluded that prenuptial agreements increase the likihood of a successful marriage. Mahar argues that the division of assets is "the least compelling reason for average American couples to consider prenuptial agreements, since most couples do not enter marriages with significant assets." However, she finds that "for couples who choose a traditional partnership, with one spouse exiting the workforce to raise children, agreeing in advance about how to divide assets earned during a marriage or potential future earnings can protect the stay-at-home spouse against divorce laws, which have generally eliminated long-term alimony." Mahar also opines that the process of creating a prenup acts as form of premarital counseling, making couples talk about what kind of marriage they want, and what legal ramifications there will be if one spouse veers off course. To see more on the study click here Source for this Post: Kansas Divorce & Family Law Blog Additional Sources: California Divorce & Family Law Blog

Using a Prenuptial Agreement to Improve Your Marriage

The planning stage of a marriage is a time filled with optimism for the future. It is also one of the best times to establish equality in a marriage or committed relationship. The Equality in Marriage Institute was a non-profit organization which is now closed, but which leaves behind tremendous tools for developing pre-nuptial and cohabitational agreements, and faciliatating discussion about each party role in the relationship. The Institute's website is still up and functioning and provides great information on prenuptial agreements. To learn more click here. Additionally, the organization developed a guide to conversations and planning prenuptial and/or cohabilitation agreements. To download a free copy of their Commitment Conversation Handbook click here. Even if you are already married or in a committed relationship, it is never to late (or too early) to talk about your future together.

How to Use a Prenuptial Agreement to Protect Your Property

In the state of Nevada, when a couple marries, the laws of the state presume that a couple intends to hold and acquire all of their property during the marriage as “community property”. Meaning that, regardless of how the property is titled, the law in Nevada starts with a presumption that each partner to the marriage has an equal ownership interest. Most of the time, the law mirrors a couples intent but what if you and your partner fall into an exception. For instance, if you own an undivided interest in the old family homestead, it may be important to the members of your natural or birth family to keep the property in the immediate family rather than having ownership pass to your spouse, or children. Similarly, if you have started a business prior to your marriage which has other business partners or investors, there may be restrictions on your ability to transfer your ownership interest, including the acquisition of a community property interest by marriage. To avoid having a spouse acquire an unintended property interest, a prenuptial agreement should be used to establish in writing your intent regarding all of your property or just specific pieces of property in which you and your spouse do want you community property presumptions to be applied. A properly executed prenuptial agreement will overcome the statutory presumption of community property. Keep in mind that the waiver of community property interests is not always about giving something up. It can also be used to protect your spouse. Consider for a moment the situation where one of the parties to the relationship has outstanding financial judgments or tax liens entered against them. In such a case, you may not want those creditors to be able to attach the community property interest of property in which the other spouse also has an interest. By waiving the application of community property law, you can protect the innocent spouse from attachment or interference of their interest by the debtor spouses’ creditors.

Prenuptial Agreement As A Communication Tool

A prenuptial agreement is a great vehicle to open up discussions about money matters prior to entering into a marriage.  With disputes surrounding money, one of the most commonly cited reasons for marital discord, it is important for couples contemplating marriage, to openly and honestly discuss money matters.  You and your partner should consider the following questions:

• How do you think about money? 
• How important is money to your sense of security and happiness?
• What are your financial goals for the future?
• What are your expectations about the support of the family?
• How much money is enough?

Historically, the roles of married parties were strictly defined; men went to work to support the family and women stayed home to care for the house and children.  Engagements were often for periods of one year or more, and parties tended to marry someone they had grown up with who shared similar cultural, religious, and economic backgrounds. 

Today, however, the world had grown much smaller.  It is now easy to travel from state to state, inexpensive to call long distance, and email and video conferencing take place everyday with friends from around the globe.  We are a multi-culteral society where it is more common to have two working spouses than one, and the old stereotyped roles of husband and wife have been set aside.

While these are all benefits of a modern society, the financial independence of each party prior to marriage, can sometimes lead to its financial downfall after the marriage.  You may mistakenly assume that because you and your significant other are compatible on other fronts, your beliefs about money must also be similar.  You do not want to find out after the marriage – and after you are financially entangled - that your spouse has hidden debt, prior tax liens, or a poor credit score due to financial mismanagement.

A prenuptial agreement requires each party to make a full financial disclosure to the other.  You will prepare a list of all of your assets and debts so no one is surprised later.  The negotiation of the agreement will also give the two of you a platform upon which to discuss your financial goals.  Opening the lines of communication about your financial expectations during the marriage is a great way to prevent future problems.

Prenuptial Agreements As A Preventative Tool

A prenuptial agreement, sometimes called a “prenup” is a contract entered into between two parties in contemplation of marriage. If used correctly, a prenuptial agreement is also a powerful tool for preventing future disputes. A prenup can be used as a valuable communication tool. It can help to establish rights and responsibilities for financial planning during the marriage. Another example of the use of a prenuptial agreement as a preventative planning aid, is to use the contract to elect the application of laws that may be beneficial to you. The agreement can be used to protect your future spouse from creditors, and can even be used as an estate-planning tool to safeguard valuables, and insure that assets are inherited by the persons you designate. In the upcoming series on prenuptial agreements, we will explore different uses for this oft-misunderstood document. So set aside your preconceived notions and look for more information about prenuptial agreements to be posted in the coming days.