A Prenuptial Agreement traditionally makes divorce and the equitable distribution of property much easier if the parties decided to make one prior to the marriage. As I have written before, the Agreement can resolve the vast majority of the issues facing the parties in a divorce including, but not limited to, how business interests will be divided, how to deal with retirement funds, who will be responsible for marital debt and the terms of alimony. However, if the parties have children, they could still face significant litigation.
In our previous post, we began a discussion about the growing popularity of prenuptial agreements. More couples in Pittsburgh and elsewhere are realizing that these documents are not just for the very wealthy or for couples of vastly different ages.
Valentine's Day occurred earlier this week, and the dust may be just starting to settle for many Pittsburgh residents. There are few occasions which illicit such contrasting emotions, and most people either love or hate this holiday depending on their expectations and previous experiences.
Celebrity divorce settlements are absorbing for many reasons. Beyond the gossip, it can be intriguing to consider, from a legal point of view, what issues may arise during the divorce when substantial income and assets are involved. Even though the divorcing couple may be quite wealthy, however, the division of assets for higher net-worth individuals and couples during divorce follows a similar process to that which anyone seeking a divorce would find. There are some additional issues, of course, such as the valuation of the assets and the determination of what earnings should be shared in the long term. Those extra steps can also add to the cost of the divorce itself.
Prenuptial agreements aren't only for the rich and famous. It's a good idea for all individuals carrying assets into a marriage to use a prenuptial agreement as a means of protecting assets in the event of a divorce. These contracts can make the division of assets easier by clearly assigning certain assets to one spouse, reducing the time a couple spends in litigation.
For most people getting married for the first time, having a prenuptial agreement is an unappealing prospect. Only about three percent of first-time spouses get prenups. But a lot of people getting divorced and dealing with contentious matters of property division probably wish they had a clear and enforceable prenuptial agreement.