While every divorce comes with a set of challenges, high income divorces are unique.
They often have complex financial holdings and business ownership. A prenuptial agreement or “prenup” may feel like bad luck to many, but it is important to ensure that you protect your valuable assets in case of divorce.
A prenuptial agreement serves several purposes for high income or high asset divorces:
Protects separate or non-marital property:
When one or both spouses enter the marriage with considerable assets, that spouse may want to protect those assets and ensure they will remain their own in case of divorce. A prenuptial agreement can identify and allocate assets and how they may be subject to division.
Identifies and divides marital property:
Similar to separate or non-marital property, a prenuptial agreement can identify what the parties intend to be marital property, and which spouse receives that property in a divorce. This prior allocation and identification can save the parties from arguments and highly contested hearings later.
Addresses spousal support:
Prenuptial agreements can include language regarding whether spousal support will be paid by one spouse to another. For the spouse who may be receiving this support, it can guarantee that support will be paid, and they are protected from a situation where a judge may feel that they are entitled to a lower amount than the amount the parties agreed to in a prenuptial agreement. For the paying or higher income spouse, agreeing to maintenance in a prenuptial agreement can potentially save money because it is capped at what your income may have been when the prenuptial agreement was signed, which might be lower than it is now.
When considering a prenuptial agreement, it is important to make a full disclosure of assets and debts to be sure both parties have all the information they need to make an informed decision to enter the agreement. Given the complexity and high stakes of a high-income or high-asset divorce, it is crucial to work with an experienced family law attorney who can help address these unique complex matters.
