The Role and Benefits of Prenuptial Agreements in New York
We have all heard the phrase “what’s yours is mine” used in connection with married couples. While a marriage is the merger of the lives of two individuals in love, it is also an economic union. Assets garnered and obtained during the course of a marriage are considered marital property. But what happens to this marital property when the “I do’s” don’t last?
The Role of a Prenuptial Agreement
Under New York State law, in cases of divorce, marital property is divided between the parties and a specific formula is used to account for all other considerations, including spousal maintenance and child support. Once the specific considerations are figured out, a court will typically split all marital property evenly between the couple.
A prenuptial agreement can dictate a deviation from that even split, even before the marriage begins. It serves to protect the assets and interests of both parties entering into a marriage by ensuring the parties remain in control over the property that was theirs alone upon entering the marriage. A couple may enter into a prenuptial agreement in order to preemptively settle these questions surrounding the division of martial property, as well as determine spousal maintenance in the event of a divorce.
The Benefits of a Prenuptial Agreement
Betrothed couples may be hesitant to raise the topic of a prenuptial agreement due to the inherent awkwardness of planning for the end of a marriage before it even begins. However, there are several benefits to prenuptial agreements. Although prenuptial agreements are more commonly thought of in relation to celebrities or wealthy couples, any couple may seek to create a prenuptial agreement. Reasons to do include to protect the inheritances or interests of children from previous marriages; to preserve the ownership of a beloved childhood home; to protect the interests of premarital businesses; or to ensure specific distribution of personal property. Although discussing a potential divorce during an engagement can be uncomfortable, it may be preferable to have the discussion beforehand rather than wait and risk having a court determine the distribution of your assets.
Prenuptial agreements will typically be upheld so long as the parties entered into a fair agreement in good faith. The fairness of the agreement, as is the case with most contracts, may be determined by establishing that there is no evidence of fraud by either party, that neither party was under duress when signing the agreement, and that the terms of the agreement are not unconscionable.
Between the proposal and the “I dos,” couples should consider whether a prenuptial agreement makes sense for them. Should they decide to draft an agreement, each party should obtain their own lawyer to advocate for, and protect, their individual interests, and the parties should work together to draft a prenuptial agreement that works best for their needs.
This is not to be considered legal advice. Please reach out to an attorney for information regarding your specific situation.
Conor C. Horan is an Associate concentrating in matrimonial and family law.
She can be reached by phone at 845-764-9656 and by email.