Prenuptial Agreements in New Jersey

Often some of the difficulties faced in a divorce proceeding can be avoided with a properly prepared pre-nuptial agreement. This agreement is particularly effective for persons entering into a subsequent marriage; when there are significant assets involved or children from a prior relationship. Under circumstances such as these, the financial terms for the dissolution of a marriage can be established and used for the benefit of both parties in the event of a later separation or divorce.

Pre-nuptial agreements allow the parties to agree to a framework for how marital assets and pre-marital assets should be divided in the event of a divorce. The assets of each party (real property and personal property) should be fully disclosed so that an informed decision can be made as to each party’s equitable interest in these assets.

A well written pre-nuptial agreement will detail whether particular assets are to become shared after the marriage or will remain separate property should the parties ultimately divorce. For example, one party may own a home that will later be used as the marital residence. A pre-nuptial agreement can establish the ownership interest (if any) in that property which either spouse may have. The pre-nuptial agreement is equally valuable when there may be significant debts on the part of one party. Consumer debt, i.e., credit card debt, is readily ascertainable, however, a properly prepared pre-nuptial agreement can address potential liability for prior obligations such as debts to the Internal Revenue Service or obligations resulting from pending litigation.

Often couples who are entering into a second marriage or have financial obligations unrelated to the marriage can benefit greatly from a pre-nuptial agreement. Fortunately, New Jersey Law also provides for the formation of an ante-nuptial agreement which can be prepared after the parties have married. This is beneficial in instances where one party may have accumulated significant assets or liabilities for which the other party need not be liable. Another example showing the usefulness of an ante-nuptial agreement is when a party may receive an inheritance that is not intended to be co-mingled with marital assets.