Protect Your Assets with a Prenuptial Agreement for a Second Marriage in NJ
Prenuptial Agreements Take on Greater Relevance When Signed in Second Marriages in New Jersey, as the Parties Want to Protect Their Previously Acquired Assets
A prenuptial agreement is always a good idea to keep expectations clear about who gets what should the marriage fail. Considering that in the U.S., more than 60% of second marriages end in divorce, having a prenup will save a lot of time and money when it comes time to settle the financial part of the relationship. It is vital that you know what can and cannot be included in your second marriage prenuptial agreement and that the family law attorneys at The Montanari Law Group can work with you to make a prenup that will protect you and be fair to your spouse.
Second Marriage is an Important Reason for a Prenuptial Agreement
Typically, people getting married for the second time have more assets than when they were younger. A prenuptial agreement protects the help you have accumulated over the years and provides a cost-effective way of ending the marriage instead of years of litigation. A prenup marks the financial boundaries between what is yours, mine, and ours.
Common Financial Priorities When Drafting Prenups for Second Marriages in NJ
Most couples’ concerns when writing the prenup for their second marriage are distinct from those for the first. Supporting a spouse through retirement is essential. If one has a bigger pension than the other, expenditures and investments should be decided on ahead of time. How marital property will be paid for and divided should there be separation is also a concern. Leaving an estate for inheritance and including who will receive your assets once you are gone. Determining how the divorce will be played out to keep the split as amicable as possible. The financial needs of the children from both sides and the new spouse should also be addressed.
Differences Between Prenuptial Agreements for First and Second Marriages
Most prenups cover the same bases: assets, businesses, separate property, marital property, debts, and other financial topics. But 2nd, marriage prenups cover different areas such as children from previous marriages and what their financial future will be both in the present and after their biological parent has passed. Life insurance, pensions, and property are also seen much more frequently in prenups for second marriages. Often, partners marrying for the second time are much more open to having a prenup than those getting married for the first time, principally because more assets and children are involved.
Benefits of a Prenup for a 2nd Marriage
A prenup can hold many benefits, such as allowing the couple to compose a plan for managing pensions and retirement depending on how much money they have as individuals. The couple can decide what money they will use for everyday expenses and if those expenses will be split down the middle or based on which partner has more liquid and other assets.
Prenups are a kind of insurance policy intended to protect both parties from losing everything they have and fighting for every dollar if there is a divorce. Your prenup can be as unique as you and your spouse. You will look closely at how you will support yourselves, keep property separate, and decide how property and assets will be handled after retirement. One of the many benefits of a prenup is answering the “what ifs” before they crop up. It is a way to establish trust and engage in an honest discussion about finances.
Key Aspects to Include in Your NJ 2nd Marriage Prenup
Anything having to do with children should be addressed. If one is still receiving child support or has to pay child support from a prior marriage, it should be decided if those funds will come from a separate or joint account. As children grow older, college becomes a possibility, and their expenses should also be a part of the agreement.
A prenup can also indicate how your estate should be divided once you are deceased. You may want to have percentages of your assets go to your children and spouse. You could also entrust everything to your spouse to be distributed evenly to the children or other family members. There is security for a couple when they know that each party will be taken care of no matter the situation. Insecurity breeds fear, and fear destroys relationships. The more that can be settled to guarantee that each party will be financially protected, the better their chance of dispelling any fear.
Top Assets People Want to Protect in a Prenup the Second Time Around
One of the most significant sticking points in a divorce is property. If the family home is still mortgaged, it should be decided if shared funds will pay for it or if the person to whom it belongs will be responsible for the loan payments. If the house is renovated using shared funds and there is no prenup, in a divorce, your spouse can go after a part of the appreciated value of the home you have been paying for all this time. If you and your spouse decide to go in together on a new residence, make sure you will receive a credit for your part of the purchase by including it in the agreement.
Businesses can get messy in a divorce as well. A prenup can protect a business and ensure that what was yours before the marriage stays yours. You can avoid a forensic audit of your outgoing and incoming funds and not have to buy out your spouse’s portion or compensate them for any appreciation the business has experienced. This does not mean that in your prenup, you can’t include your spouse in the profits; it just means that you are driving the boat and making the decisions.
As previously mentioned, a prenuptial agreement should also consider retirement funds, stocks, and pension plans. Separate assets such as yachts, vehicles, and property should also be included. For equestrian enthusiasts or farmers, your livestock can be included as well.
Contact our Family Law Office for Help with a Prenuptial Agreement for Your Second Marriage
A prenuptial agreement is as unique as every couple’s relationship. You want to feel protected, but you also wish to guarantee that your contract is legal and binding. An attorney can meet your financial needs by developing a plan that fits your relationship needs.
The Montanari Law Group can help you determine the best decisions for you and your spouse in Caldwell, Montclair, Wayne, Ridgewood, West Orange, Hackensack, Paramus, Woodland Park, Totowa, Nutley, and throughout Passaic, Essex, and Bergen County NJ. We can answer any questions you have about handling a prenup for a second marriage based on our vast experience in matrimonial law. We will respect your wishes while advising you on how to best proceed with protecting and preserving your financial future. You may never need to use it, but a prenuptial agreement can bring peace of mind when getting married the second time around.
An attorney at our office can be reached by calling (973) 233-4396, or you can also contact us online. Our family lawyers look forward to helping you build your prenuptial agreement or determining what to do in the case that another legal matter arises in the future.