Addressing Alimony in Prenuptial Agreements in New Jersey

When Creating a Prenuptial Agreement, It Is Crucial to Prioritize Full Financial Disclosure. This Should Include Details About Alimony or Spousal Support.

It’s wedding time, and you are busy selecting a dress and coordinating with the event planner to nail in the final details of the reception. But have you and your fiancé discussed a New Jersey prenuptial agreement? Gone are the days in which prenups were only for high-earning couples. A prenuptial agreement, which is a document that clarifies financial and asset ownership and terms in the case of a divorce, can provide clarity for a couple that adds to their sense of security and partnership within the union.  We know that considering divorce before you are even married is not a very romantic notion. However, you and your fiancé may find that getting clear about your personal and shared finances and how you would approach their distribution should divorce ensue is a wise idea. Read on to learn more about one aspect of financial support often awarded in divorce that can be addressed in a prenup: alimony.

Financial Transparency and Peace of Mind: Two Important Reasons You Should Consider a Prenup

Prenups provide a great deal of peace of mind for both spouses prior to their marriage because they allow them to be transparent and on the same page regarding their finances. One of the most elemental facets of a prenup is that it clearly declares which assets are personal or belonging to each spouse prior to the marriage. Personal assets obtained prior to the marriage — not subject to equitable distribution in the case of a divorce — when laid out clearly in a prenup, provide their owners peace of mind that their property is their own. Additionally, the terms laid out in a prenuptial agreement, such as spousal support or alimony, give lower-earning spouses the peace of mind that they will be financially provided for in the case of divorce.

Properly disclosing financial information in a prenup is essential for multiple reasons. First, financial information must be accurately represented in the prenup for it to be valid in the case of divorce. Additionally, if one fails to outline all premarital assets in their prenup, they could be erroneously considered marital assets and thus subject to equitable distribution.

Ensuring Financial Equity Via Alimony Provisions in Prenuptial Arrangements

Often, partners go into a marriage knowing that one spouse will be the breadwinner while the other spouse will earn significantly less. In these cases, the couple may choose to include terms of post-divorce alimony in their prenuptial agreement. This sets the expectation that the non-breadwinning partner’s contributions to the marriage and household would be financially honored and compensated for in the case of divorce. Additionally, in order to ensure that each couple goes into the marriage with the best of intentions to remain in the partnership, the couple may also desire to include alimony terms in their prenuptial agreement. For example, they may decide to include the stipulation that spousal support will only be paid to the lower-earning spouse in the case that the marriage lasted 10 years before divorce.

Addressing Future Financial Shifts in Prenups in NJ

A prenup can also address the possibility of future changes to financial circumstances, such as one spouse’s career advancement or inheritances. Marital assets such as a spouse’s income earned during the marriage are subject to equitable distribution under New Jersey law. However, a different distribution structure can be laid out in a prenuptial agreement. Terms of financial distribution in a divorce, should one partner have received an income increase due to promotion or other career advancement during the marriage, can be clearly defined in the prenup. Additionally, the distribution of a potential inheritance, which, according to New Jersey law, is not a marital asset, can be outlined preeminently in the prenuptial agreement.

Outline Your Spousal Support Situation in a Prenup with Knowledgeable Legal Counsel in Southern New Jersey

An attorney is not required to file a prenuptial agreement in New Jersey, but it is highly recommended that a qualified family law attorney review the terms of the prenup before it is filed to ensure that it will be valid and that all financial considerations are taken into account. There is a lot at stake when it comes to merging finances in marriage and protecting your premarital and marital finances is of the highest priority. Our team at Bronzino Law Firm firm is committed to helping couples develop a comprehensive financial plan that provides them both with a clear view of their financial landscape and gives each the peace of mind that their financial well-being will be ensured, whatever their future holds in Little Egg Harbor, Tinton Falls, Berkeley, Manchester, Bay Head, Wall, Toms River, Monmouth Beach, Holmdel, and across Monmouth and Ocean County. Contact us today at (732) 812-3102 for a free consultation to discuss whether including alimony terms in a prenuptial agreement is right for you.