Individuals with significant assets and wealth often establish a prenuptial agreement to protect their financial interests in case of divorce. With a deeper understanding of the impact of prenuptial agreements in an Owings Mills high-asset divorce, you can better plan for asset protection. A reliable high-asset divorce lawyer could help you figure out how a prenup could influence your divorce process.
Also known as a premarital agreement or a prenup, a prenuptial agreement is a formal contract that a couple drafts and signs before marriage. This document identifies all assets that each party owns and details how to distribute them if they get a divorce or one party passes. In addition to assets, a prenuptial agreement may cover debts and spousal support.
There are multiple reasons why a couple might sign a prenup before a high-asset divorce.
High-asset divorces could involve high-value assets, many of which come with certain complexities when being divided between parties. For example, these divorces may involve investments, real estate, and businesses, and a prenup makes it clear which partner gets which assets.
Before marrying, both partners may want to keep certain property separate in the event of a divorce, protecting them and each partner’s best interests. This property would subsequently remain with the designated spouse during asset division, as outlined in a prenuptial agreement.
If a couple is in a business partnership or one or both partners own businesses or professional practices, they may want to protect these interests and prevent the other from receiving compensation or ownership.
Another potential benefit of a prenuptial agreement is the ability to determine how spousal support would work during a high-asset divorce. Specifically, the document can help decide whether one spouse will need to pay alimony to the other and how much.
It is important to note that a prenup will not cover certain aspects of divorce proceedings, especially child custody and support. Instead, the court will determine how child support payments and custody work based on the child’s best interests.
A prenup primarily affects a divorce through the property division process. Maryland is an “equitable distribution” state, meaning the court is responsible for determining how to distribute property in a way that is both “fair and equitable” to both parties.
However, individuals can have more control over this process with a prenup in place to protect premarital assets. If both parties sign this document with their consent and full disclosure, the court will likely adhere to its terms instead of applying equitable distribution. An Owings Mills attorney could further explain how drafting and signing a prenuptial agreement can affect the specifics of a high-asset divorce.
Want to learn more about the impact of prenuptial agreements in an Owings Mills high-asset divorce? An experienced attorney could help you determine how this documentation could come into play during your divorce. Contact Nguyen Roche Sutton today to schedule a consultation and learn about prenups and other documentation.
