A prenuptial agreement can be one of the most effective financial planning tools available to couples contemplating marriage—particularly when one or both parties have substantial assets, business interests, real estate, investments, an expected inheritance, or significant family wealth.
For individuals entering a marriage with considerable assets, a carefully drafted New York prenuptial agreement can establish clear expectations regarding financial rights and obligations before those issues become complicated by marriage or divorce.
What Can a Prenuptial Agreement Protect?
A prenuptial agreement can address how assets and financial obligations will be treated during the marriage and in the event of divorce. Depending upon the circumstances, an agreement may address:
- Separate property brought into the marriage;
- Businesses and professional practices;
- Real estate and investment properties;
- Brokerage accounts and other investments;
- Trust and inheritance interests;
- Marital property acquired during the marriage;
- Responsibility for debts and liabilities; and
- Spousal maintenance, including the amount, duration, or waiver of maintenance, subject to applicable New York law.
For business owners, executives, entrepreneurs, professionals, and other high-net-worth individuals, addressing these issues before marriage can provide greater financial certainty and potentially avoid costly litigation if the marriage later ends.
Can a Prenuptial Agreement Be Challenged in New York?
The existence of a signed prenuptial agreement does not necessarily prevent a spouse from challenging it during a divorce. However, New York courts generally favor the enforcement of properly executed marital agreements, and setting one aside can require a substantial evidentiary showing.
Depending upon the particular facts, a spouse challenging an agreement may assert grounds such as fraud, duress, coercion, overreaching, unconscionability, or other inequitable conduct.
Whether a challenge succeeds is highly fact-specific. Courts may examine not only the language of the agreement but also the circumstances surrounding its negotiation and execution.
How Can You Reduce the Risk of a Future Challenge?
Careful planning at the time the prenuptial agreement is negotiated can be extremely important.
Each party should have the opportunity to retain independent legal counsel of his or her own choosing. Appropriate disclosure of assets, income, and liabilities can also help demonstrate that both parties understood the financial circumstances surrounding the agreement.
The negotiation process matters as well. There should be sufficient time for each party and counsel to review proposed terms, negotiate changes, and understand the consequences of signing the agreement.
Waiting until immediately before the wedding to present or execute a prenuptial agreement can create unnecessary problems. A party later seeking to challenge the agreement may claim that the timing created pressure or duress. Beginning the process well before the wedding allows meaningful negotiations to occur and helps create a clearer record that the agreement was entered into voluntarily.
Prenuptial Agreements for High-Net-Worth Individuals in New York
For individuals with significant wealth, the financial issues involved in a future divorce can be particularly complex. Business valuations, investment portfolios, real estate holdings, executive compensation, trusts, inheritances, and other sophisticated assets may become the subject of substantial litigation.
A properly negotiated prenuptial agreement can address many of these issues before the marriage begins and provide both parties with greater certainty concerning their financial rights.
Speak With a New York Prenuptial Agreement Attorney
Whether you are considering marriage and want to protect significant assets or you are facing a divorce involving an existing prenuptial agreement, experienced legal counsel can help you understand your rights and obligations.
The Meyers Law Group, P.C. represents clients throughout Long Island, Suffolk County, Nassau County, and New York in complex matrimonial and family law matters, including prenuptial agreements and high-net-worth divorce.
If you are considering a prenuptial agreement—or have questions regarding the enforceability of an existing agreement—contact The Meyers Law Group, P.C. to discuss your circumstances with an experienced New York matrimonial attorney.