Prenuptial Agreements in New York
Many times, due to films and movies, prenuptial agreements that are perceived as a sign of distrust or looking to the end of a marriage prior to “happily ever after” even beginning. Cimasi Law has had a very different perspective on prenuptial agreements for Buffalo, Amherst, and all of Western New York. In a second marriage, a prenuptial agreement is may be considered to secure legal or financial obligations from the first marriage. Prenuptial agreements can, somewhat counter intuitively, also help build trust between children, relatives, and the new spouse. Removing the uncertainty over inheritance and asset distribution raised by adding a new spouse may allay the uncomfortable concerns of either party’s children or family, especially if the marriage comes later in life. When each party has similar wealth profiles and children or next of kin, prenuptial agreements can help bring families together to ensure that everyone is entering the marriage with a clear objective with a relationship built on love and trust.
Why And When Should You Consider A Prenuptial Agreement?
- Remarriage:
- If you have been previously married, this means that you may have previous financial obligations to your spouse or to your minor children. The previous marriage could bring financial and legal expenses into the new marriage. A prenuptial agreement can protect you from losing additional assets and reassure existing potential heirs of their standing, but it may also protect your new spouse or children from an unfair division of assets with an ex-spouse or previous dependent children.
- You Have Similar Wealth Profiles
- If you have similar wealth profiles, in family assets, businesses, real estate, and investments, a prenuptial agreement may forestall unpleasant legal battles between your dependents and children. While a prenuptial agreement is a way to protect those assets, in your will or estate plan, you do have the freedom to gift your current spouse to the degree you see fit. The prenuptial agreement can add instant trust with the new spouse and children from a previous marriage or family members that share in businesses.
- Your Soon-to-be-Spouse has Significantly more Debt Than You
- Due to rising costs in education, many spouses in a first marriage, come into the marriage with student loan or credit card debt. Without a conversation and prenuptial agreement, should the marriage end prior to debt repayment, the other spouse may have financial responsibility to take a portion of the debt as their own.
- Your Soon-To-Be-Spouse Has Significantly More Wealth Than You
- While it is just as important to protect the wealth that you have
,if you help to build your spouse’s business during the marriage, but have not been previously married, or are not legally an employee of the business, having a prenup to protect your sweat equity may protect you if the marriage fails. This may also be the case if one spouse has not worked and taken care of the children and the household while the other spouse was the primary income earner. A prenup can protect you for these “what-if” scenarios.
- While it is just as important to protect the wealth that you have
- You are a business owner
- If you have created a business, or multiple business entities prior to joining a relationship, it is your responsibility to the business, your partners and your next of kin to protect these assets as assets that are not considered spousal. This is a time to consider a prenuptial agreement to protect all parties’ financial interests in the business.
Pre-Nuptial Agreement Law Overview
Entering into a marriage is a significant life event that comes with both emotional and financial implications. At Cimasi Law Office, we have extensive experience in crafting comprehensive pre-nuptial agreements that protect your interests and provide peace of mind. Our seasoned attorneys are committed to leveraging their deep understanding of New York State laws to create an agreement that stands up to legal scrutiny and serves your needs.
- Domestic Relations Law § 236(B)(3)
- Governs the enforceability of pre-nuptial agreements in New York
- General Obligations Law § 5-311
- Addresses the legality of agreements between spouses and future spouses
- Estates, Powers & Trusts Law § 3-1.2
- Discusses the impact of pre-nuptial agreements on inheritance rights
- Domestic Relations Law § 236(B)(5-7)
- Covers the distribution of property and spousal support in the context of pre-nuptial agreements
- General Obligations Law § 5-703
- Requirements for written agreements, including pre-nuptial agreements
The applicability of these statutes may vary based on the specifics of each case, such as the assets involved, the parties’ intentions, and other mitigating or aggravating factors. A thorough review of your specific situation is essential for crafting the most effective pre-nuptial agreement for you.
At Cimasi Law Firm, we understand that discussing a prenuptial agreement can be a sensitive topic, often fraught with emotions. With years of experience in crafting tailored prenuptial agreements, we aim to make the process as smooth as possible, ensuring that both parties feel heard and protected. Our expertise in this area not only safeguards your assets but also serves as a foundation for open communication and trust between you and your soon-to-be spouse.
For Remarriage
- Asset Segregation: Clearly define which assets are from the previous marriage and which will be part of the new marital estate.
- Spousal Support Clauses: Establish terms for spousal support, especially if there are ongoing obligations from a previous marriage.
- Heir Protection: Include clauses that protect the inheritance rights of children from previous marriages.
For Similar Wealth Profiles
- Asset Protection: Clearly outline the division of family assets, businesses, real estate, and investments.
- Estate Planning Coordination: Ensure that the prenuptial agreement is in harmony with existing wills or estate plans.
- Trust Building: Use the agreement as a tool to build trust between new spouses and existing family members.
For Spouse with More Debt
- Debt Responsibility: Specify that pre-marital debts belong to the spouse who incurred them.
- Asset Protection: Ensure that marital assets are not used to pay off one spouse’s pre-existing debts.
- Credit Protection: Include clauses that protect the creditworthiness of the debt-free spouse.
For Spouse with More Wealth
- Sweat Equity Clauses: Include provisions that recognize non-financial contributions like homemaking or business development.
- Asset Valuation: Establish a method for valuing assets acquired or enhanced during the marriage.
- Income Protection: Define what constitutes marital income and how it will be divided in case of divorce.
For Business Owners
- Business Exclusion: Clearly state that the business is not a marital asset and is exempt from division.
- Profit-Sharing Clauses: If applicable, outline how profits from the business will be shared or not shared.
- Succession Planning: Coordinate the prenuptial agreement with any existing business succession plans.
It’s important to remember that these strategies may vary on a case-by-case basis and should be developed in consultation with legal professionals. Always seek expert advice tailored to your specific circumstances.
Take Action. Protect Your Rights. Contact Us Today.
If you are located in Western New York and looking to discuss drafting and filing a prenuptial agreement prior to your wedding day, please call Michael Charles Cimasi, your experienced counselor located in Amherst, New York at 716-267-6430 or email me here.
