March 2

The Benefits of a Prenuptial Agreement

Prenuptial agreements often have a negative connotation as they are not considered the most romantic way to begin a marriage. People often assume a prenup is only something needed by wealthy individuals. This is an inaccurate perception; obtaining a prenuptial agreement can benefit any couple. A prenuptial agreement allows a couple to opt out of Nevada’s community property law and determine how their marital property will be divided in the event of a divorce.

What Is a Prenuptial Agreement?

Prenuptial agreements, also known as premarital agreements or prenups, are legally binding contracts two people enter into before marriage. The purpose of a prenup is to provide clarity and certainty about the financial arrangements between the couple in the event of a divorce or death. A prenup protects both spouses’ assets, such as real estate, investments, retirement accounts, and other financial assets. Each state has different laws regarding prenuptial agreements.

Prenuptial Agreements in Nevada

Nevada has adopted the Uniform Premarital Act, NRS 123A.010, which outlines and enforces premarital agreements. These agreements must be in writing and signed by both parties to be enforceable. Prenuptial agreements can cover a variety of topics, such as the division of assets and debts, spousal support, and the division of property upon divorce. Prenuptial agreements must be entered voluntarily and without duress to be valid.

5 Benefits of Prenuptial Agreements

1. Encourages an Honest Pre-Marriage Discussion

One way of initiating an honest discussion about finances, assets, and liabilities in a relationship is discussing a prenup agreement. Though it may seem daunting, having a candid conversation about these issues enables a couple to understand each other’s expectations before they tie the knot.

2. Defines Marital Property

Courts often divide marital property among spouses during the divorce process based on state law. Determining what constitutes marital property in a divorce can lead to a bitter property battle that lasts months or even years. Couples can avoid this by stating what constitutes marital property in their prenup agreement. A prenup agreement should also specify how to divide marital property in the event of a divorce.

3. Ensures Fairness in Sharing Assets

If you have accumulated wealth and marry a partner whose assets are significantly less, you risk losing a considerable amount of your wealth to them if you divorce. In such a situation, you should take some steps to protect your wealth. This is particularly important if you have retired or are near retirement because you won’t have a chance to recoup retirement funds in case of a divorce. The best way to protect your retirement assets is with a prenuptial agreement. With such an agreement, you are guaranteed that your assets will be distributed fairly in the event of a divorce.

4. Protects Your Business

A prenuptial agreement can be a powerful tool to protect your business in Nevada. You can designate your business as a separate asset in your prenup agreement. This protects your business against liquidation in the event of a divorce.

5. Protects Your Children

If you get married and have children from a previous union, it is crucial to consider your new marriage’s impact on your children. Signing a prenuptial agreement enables you to designate specific assets for your children. This ensures that your children are protected and do not lose their rights over your property.

How Are Prenuptial Agreements Created in Nevada?

Creating a prenuptial agreement in Nevada requires careful consideration and planning. An experienced family law attorney should draft the agreement. The first step in creating a prenuptial agreement is for both parties to disclose their assets and liabilities. This includes real estate, investments, business interests, debts, and other financial obligations. Each party should provide complete and accurate disclosure of their financial situation.

Can a Prenuptial Agreement Be Set Aside in Nevada?

A prenuptial agreement in Nevada can be set aside if it is deemed invalid or unenforceable. Generally, a prenuptial agreement is considered invalid if it was not entered into voluntarily, if it was obtained by fraud or duress, or if it is unconscionable. A prenuptial agreement is also considered unenforceable if it does not meet the requirements of Nevada law.

What Are the Drawbacks of Not Having a Prenup?

Without a prenuptial agreement, couples are subject to the laws of their state when it comes to dividing their assets and debts in the event of a divorce. This means that the court will decide how to divide the couple’s assets and debts based on the state’s laws, which may differ from the couple’s wishes. The right to privacy can also be protected with a prenuptial agreement. There are often confidentiality clauses in prenuptial agreements to protect against social media exposure and tell-all books.

Who Should Consider a Prenuptial Agreement?

Anyone who is considering marriage should consider a prenuptial agreement. A significant percentage of marriages in the United States end in divorce. A prenuptial agreement is essential to protect your financial security and help you avoid protracted, expensive divorce litigation. Prenups can benefit couples of any age, income level, or previous marital status. This is especially true for those with significant assets, a business, or children from a prior relationship. The agreement outlines the rights and obligations of each party during the marriage and in the event of a divorce.

Contact An Experienced Family Law Attorney

The key to a valid prenuptial agreement is in the details. If an agreement is not drafted properly or fails to account for a couple’s unique circumstances, it can be declared unenforceable by the court. This could have significant and expensive consequences for the parties involved.

The Leavitt Family Law Group attorneys will work closely with you to understand your circumstances, explain your options, and collect and examine your financial information.o We will guide you through the process and work to help you achieve your objectives when drafting a prenuptial agreement.

When you need a family law attorney in Henderson, Nevada, call the Leavitt Family Law Group at 702-447-0084 or contact us online. We serve clients in Henderson, Las Vegas, and surrounding communities.


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