A pre-nuptial agreement is a contract between spouses, which is entered into before the couple gets married. This contract often contemplates and determines the rights and responsibilities of each party in areas such as property division, maintenance, distribution of any assets, and other family law matters in the event of a divorce/separation. It may also address estate planning issues in the event that one of the spouses dies during the marriage. A pre-nuptial agreement cannot impact a child’s right to receive financial support, child custody or involve anything criminal. Pre-nups can eliminate legal gray areas and provide a couple with more security for their future. They are not for everyone, however.
There is a negative stigma surrounding pre-nuptial agreements, according to The Huffington Post. However, though formerly seen as a detriment to marriage and even an inducement to divorce, pre-nuptial agreements may actually strengthen a marriage. While pre-nuptial agreements recognize the possibility of divorce, it does not mean divorce is inevitable. Thinking of a pre-nup as legal protection for when you divorce is inaccurate and is not the point of a pre-nup. The point is to make sure your future is secure, no matter what happens. There’s nothing wrong with being prepared. There are a few factors to consider when determining whether you should get a pre-nup:
- Your ages. Older couples with accumulated assets can benefit more from a pre-nup than younger couples;
- Children from a prior relationship. A pre-nup can protect the financial future of children from a previous marriage;
- Substantial assets. The more assets you have, the more reason to protect them; and
- Inequality of assets. If there is a large disparity of assets between you and your soon-to-be spouse, you should get a pre-nup.
How you decide to approach your marriage is completely up to you, but it is important to understand the options available to you. If you are considering entering into pre-nuptial agreement in Illinois, the experienced Chicago pre-nuptial agreement attorneys at Nottage and Ward can help you make an informed decision about your future. To learn more, call us today at (312) 332-2915.
Recently, Forbes featured an article that discussed how divorce can complicate business ownership, particularly if the value of a business increased during a marriage. The value of a marital business in Illinois will usually be included in marital assets that will need to be split between divorcing spouses following a business valuation. However, there are steps a party can take to protect the business and their investments. If they have a greater stake in the business or if they consider the business to be separate property, they may be able to prevent a business valuation from being conducted.
While marital and separate property can be incredibly complicated, typically, one party will claim a right to a certain percentage of the other party’s business, whether or not they contributed directly to growing it. One of the biggest steps a person can take to protect their business during a divorce is to have a pre-nuptial agreement in Illinois in place before the marriage begins. In order for the prenup to be most effective, it should contain certain elements, including:
- The agreement should be in writing
- The agreement must be made voluntarily and without coercion
- The agreement must provide an honest admission of assets, nothing should be hidden
- The agreement must be fair: one party cannot receive significantly more than the other
- It must be implemented by both parties, in front of witnesses if possible
By making use of a pre-nuptial agreement, both parties can determine in advance what property will be considered marital or separate property and how the marital property should be divided in the event of divorce.
Another option would be for a party to set up a Domestic or Foreign Asset Protection Trust which essentially transfers the ownership of separate property into the trust. While there are some exceptions, this would work for most business entities, and would need to be done several years before a divorce or else it may be able to be voided. A post-nuptial agreement can also be used to protect a business during divorce, though they are frequently challenged.
When your business is on the line, you need skilled and experienced legal assistance to ensure that you receive what you need and deserve. At Nottage and Ward, our Chicago divorce attorneys have spent over 20 years helping families through the complexities of the divorce process. To learn how we can help you, call 312-332-2915.
