While the stereotype of prenuptial agreements involves a wealthier older husband and a second trophy wife, the truth is that they can benefit many couples. There are sometimes unintended and unexpected consequences in division of community property, depending on state laws. There may be additional concerns beyond the stereotype that a prenuptial agreement can address.
The Uniform Premarital Agreement Act (UPAA) was drafted in 1983 as a model for how states treat marriage contracts. It gives broad freedom to spouses in contracting economic consequences involved in marriage. By 2012, 22 states had adopted some form of the UPAA, as well as the District of Columbia.
Prenuptial agreements are still relatively rare. Estimates place couples adopting a prenuptial agreement before marriage at five percent. These agreements become more common in the case of second marriages, at twenty percent.
Prenuptial Agreements Protect Children’s Assets
In second marriages, the reasons for a prenuptial agreement are varied. Sometimes the need exists to protect assets for children from a first marriage. But there is another side as well when child support or alimony claims are involved. Even absent the reason of asset protection, those whose first marriages resulted in litigation may want to avoid it again through a prenuptial agreement.
Good estate planning ensures protection for your family. Contact Unsworth LaPlante, PLLC in Vermont for assistance.