In Part One of our Prenuptial Agreement blog series, we explored the myriad premarital and marital assets and debts that a couple should understand prior to having such an agreement drafted.
Today, we will take an in-depth look at additional monetary considerations, including spousal support, substantial gifts, and business ownership.
- Spousal Support and/or Alimony: How do you feel about spousal support? In most states, the rights to claim support go to both the husband and wife. You don’t have to address this in your agreement if you don’t want to, but it makes sense to talk about it:
- Will there be any limitations on the amount, terms and duration of support?
- Do you want to make terms about spousal support or alimony that are different than what your state law allows?
- Do you both expect to work and contribute to the household?
- Would there be a circumstance that would lead to one partner not working, such as a health problem or birth of a child?
- What about going back to school?
- Does that change your mind about how you feel about spousal support or alimony?
- Gifts from Families: Sometimes one set of parents or relatives gives a couple a large monetary gift, such as a loan or a down payment for a home. It is important to make clear what kind of gift this is. Below are some questions to ask when faced with this situation:
- Business Ownership: If you or your spouse owns a business separately, there are special issues you should consider:
- Would your prenuptial agreement include an indemnification on the business debts and taxes, such as business, personal, back taxes, or payroll taxes?
- What if a premarital business starts a new business or subsidiary after the marriage?
- What if one of you works for the other person in a premarital business? There can be many “out of job market” issues, so negotiating your terms of employment with your spouse before joining the business can be an important step
As you can see, drafting a prenuptial agreement requires the deft balance and reconciliation of multiple moving parts – from already existing assets you may want to protect to those you might seek to protect after you are married. And we have not even begun to cove the emotional aspects of negotiating a prenuptial agreement, which is a topic for a different day.
Milstein Siegel is dedicated to helping our clients understand the ins and outs of family law agreements and their benefits. We will work to help you achieve your family law goals. Call us today at (410) 792-2300 or fill out the form to receive additional information.
