If you are considering a prenuptial agreement in New Jersey, know this: prenups are not a red flag. In fact, they are becoming more common and more accepted, especially among younger couples. I have handled prenuptial agreements throughout my legal career, and I can tell you that no two prenups are exactly alike. These agreements are not one-size-fits-all. There is a lot of negotiation and compromise involved in making them work effectively.
Why Younger Couples Are Choosing Prenups
Years ago, prenups were mostly used by wealthy individuals looking to protect their assets. Younger people did not have much interest. But over the last several years, that has changed. Many younger clients today have built wealth early or have strong concerns about the possibility of divorce. They see prenups the same way they see other forms of insurance. People don’t hesitate to get life, health, or car insurance. A prenup is just protection for your financial future in case the marriage does not work out.
The Basics of a Valid Prenup in New Jersey
If you are wondering what the legal requirements are, the good news is that creating a valid prenup is not as complicated as it may seem. However, it is very important to get it right. Many poorly written prenups get thrown out in court. If you follow the guidelines outlined in the New Jersey statute, your prenup will likely stand. It must be in writing and signed by both parties. Although you are not legally required to have an attorney, I strongly recommend that you do. Having legal guidance ensures that the agreement meets all requirements.
The most important aspect of a valid prenup is full and fair disclosure. That means both parties must share their income, assets, and debts. The agreement must also be voluntary. You cannot be forced or pressured into signing. That is why I always advise my clients to complete the prenup well before the wedding date.
What Can Be Included in Prenups
The contents of a prenuptial agreement vary from couple to couple. One common scenario is when a business owner wants to protect a company that was started before the marriage. A prenup can state that any increase in the value of that business will not be subject to division in the event of a divorce.
Other topics can include:
- Alimony provisions
- Property ownership, including homes purchased before or during the marriage
- Rights in the event of death, which can often be addressed through life insurance
- Responsibility for legal fees
However, there are limits to what can be included. You cannot use a prenup to set custody or child support terms. That goes against public policy in New Jersey. Additionally, the agreement should address the elective share rule, which states that a surviving spouse has a right to one-third of their deceased spouse’s estate, regardless of what the will says.
Avoiding Conflict with Well-Written Prenups
All these issues are worth addressing now to avoid future problems. A good prenuptial agreement can save time, money, and stress down the line if a divorce does occur. I often meet with clients who have been handed a prenup drafted by their future spouse. I am not a fan of the “take it or leave it” approach. If something doesn’t feel right, I will always tell my client so.
I am here to help you understand your rights, answer your questions, and help you create a fair, customized prenuptial agreement that protects your interests. Let’s work together to build something that works for both of you and provides clarity and peace of mind for the future. Contact us today to schedule a consultation.
