Prenuptial agreements are more common than ever with high-asset unions. Especially when each party in the marriage brings their own wealth to the relationship, it is important to protect those interests. If you are facing a divorce in your high-asset marriage, you might wonder what role the prenuptial agreement plays in the final decree.
There are a few things to consider before you file for divorce with a prenuptial agreement governing the distribution.
Prenuptial agreements reduce litigation
The prenuptial agreement creates a framework for your divorce settlement. Even in an at-fault divorce state, the court honors prenuptial agreement asset distribution. This reduces any potential litigation to assets acquired during the marriage that the prenuptial agreement does not cover.
Prenuptial agreements often include fault clauses
If your prenuptial agreement includes a fault clause, which prevents one party from receiving certain assets or finances if they caused the divorce, this further simplifies your settlement. With evidence of wrongdoing on one spouse’s part, the court’s fault-based divorce ruling triggers that clause in the asset distribution.
Prenuptial agreements may include a sunset clause
Before you file for divorce with the assumption that your prenuptial agreement protects your assets, make sure your agreement is free of any sunset clause. In some agreements, a marriage lasting beyond the defined duration negates the prenuptial agreement entirely.
Understanding the basics of protecting your assets and settling a divorce with a prenuptial agreement helps clarify the process ahead. Consider the terms of your prenuptial agreement and what that contract means for your high-asset divorce case.