Divorces can be complicated and costly, and conflict over a division of wealth may lead to losing valuable personal assets. When there are disagreements over who truly owns what, the state laws may be too general to divide assets properly. This is especially relevant in high net worth divorces or other more complex arrangements. This can lead to complications when it comes to protecting wealth in a divorce, as the state laws may not be in favor of the individual.
Prenuptial agreements may be an asset in protecting wealth in a divorce. They can help clarify which assets belong to whom while protecting this with a binding legal agreement. Prenuptial agreements may also affect an existing divorce proceeding, as the terms set there may overrule the standard procedure of state laws. The Arizona courts generally default to any out-of-court official agreement, which can complicate divorce proceedings.
For more information on the effect of prenuptial agreements on divorce, consider speaking with an experienced family law attorney from Sullivan Shick. Schedule a consultation today by calling the office at (480) 719-2558.
What Are Prenuptial Agreements?
Prenuptial agreements are binding legal contracts, signed and properly notarized, that detail the ownership, responsibilities, and asset distribution of a married couple before their marriage. While many may consider them a sign of mistrust, all a prenuptial agreement does is define the responsibilities of either party should the marriage be terminated by death or divorce. They help define the financial responsibilities of the relationship in clear, binding terms.
Function of Prenuptial Agreements
Prenuptial agreements primarily serve to outline the distribution of assets if the marriage is terminated. They function as a safety net to avoid lengthy and costly disputes over asset distribution. In Arizona, this also has a significant effect on the distribution of assets in divorce.
Arizona subscribes to the method of community property, instead of equitable distribution, according to the Arizona Legal Code. This means that all property acquired during the marriage is considered to be jointly owned, regardless of the name on the deed. A prenuptial agreement may exempt certain assets from being considered community property, as the couple agreed to the method of distribution previously.
Benefits of Prenuptial Agreements in Divorce
Prenuptial agreements can be effective in helping protect wealth and important assets in divorce. Before marriage, if both spouses can agree on ownership and distribution of assets in divorce, then the divorce proceedings may not be contested. This can help simplify the process and avoid unnecessary legal expenses.
How To Create a Prenuptial
Creating a prenuptial agreement is generally simple, as it requires a signed agreement between spouses stating their intent to distribute assets in a certain fashion. The first step in creating a prenuptial is deciding whether or not one even needs a prenuptial agreement. Different methods may work for different couples, and a prenuptial may not always be the right choice.
However, once a couple decides that a prenuptial is right for them, they can proceed to work out and agree upon the distribution of assets, debt, and alimony if the marriage is terminated. Many couples choose to seek legal counsel for the creation of a prenuptial agreement, as a lawyer can assist in navigating the legal requirements and ensuring that the agreement is binding and valid. A skilled family law attorney from Sullivan Shick can help clarify the process of crafting a prenuptial with a spouse!
What is Included in a Prenup?
A prenuptial agreement is generally flexible and can suit the unique needs of a couple. However, there are several areas of focus that a prenuptial generally covers that may be beneficial to focus on. The primary purpose of a prenuptial is to outline the distribution of assets in the event of a divorce. This is especially effective when either party has large or valuable assets, or plans to acquire them during the marriage. Some such assets may include real estate, business ventures, investments, and more.
However, a prenuptial agreement may also include several other factors. Prenups can be used to determine alimony payments and other financial responsibilities in the relationship. They can also be used to determine the responsibilities of either spouse for children of their marriage or children from a previous marriage. They can also be used to determine the handling of pre-marital debt.
Legal Requirements
In addition, there are a few legal requirements that must be met for the prenuptial to be considered legally binding in court. According to AZ § 25-202, the drafted document must be signed and verified by both parties before the marriage becomes effective, and the agreement must not be forced upon either party.
A prenuptial agreement may be considered unconscionable and invalid if either party was pressed into the creation of the document, improperly informed of the financial state of the other party, or did not expressly waive their right to certain financial benefits and disclosures.
Protecting Wealth With Prenuptial Agreements
Prenuptial agreements can be an effective tool for protecting wealth. They can help to outline the division of assets in the event of a divorce, which can help to avoid lengthy disputes and conflicts. This protection can help to preserve business interests for an individual and limit financial liability in the event of a divorce. Prenuptials allow for greater control over the distribution of assets in general, should it come to divorce.
Contact an Arizona Family Lawyer Today To Learn If a Prenuptial Agreement Is Right For You
Divorce can be challenging and complex, and it can also be costly if handled improperly. By drafting a prenuptial agreement, much future difficulty and financial loss can be avoided. Ensuring that these agreements are valid and properly witnessed can clarify the process in the future as well as protect valuable assets in divorce.
In addition, if a divorce is already in progress with a prenuptial agreement still in place, this document can drastically alter the proceedings. A prenuptial agreement will often take precedence over state laws, as it is a legally binding document. Understanding how prenuptial agreements affect a divorce case can also help protect wealth in divorce.
For more information about divorce, prenuptials, and protecting wealth, consider speaking with an experienced family law attorney from Sullivan Shick. Schedule a consultation by calling the office at (480) 719-2558.