Prenuptial agreements can protect assets and also reputations, which can be critical for many people.
New York couples who are engaged to be married may not want to think about the prospect of getting divorced. That is understandable, yet sometimes doing just that is the most prudent thing they can do. Developing a prenuptial agreement is no longer something that only the rich and famous should or could do.
Reputation Protection in a Prenup
Modern marital contracts offer the same benefits as those of a generation ago, but they also provide additional forms of protection. One of the elements in many prenups that is gaining in popularity today is the social media clause. Fox News indicates this is essentially a way of protecting a person’s reputation in the unfortunate event that the couple divorces later on.
Such clauses can stipulate what each person is and is not allowed to post on social media sites after a divorce. For people with business interests, this can be very helpful. For example, if a roofer gets divorced and his former wife makes a post commenting on how they lived with a leaky roof for years, he could be in danger of losing business. Being able to show a direct financial impact is important when developing these clauses.
An article in Adweek notes that some violations of social clauses in prenups can come with a pricetag upwards of $50,000.
Estate Planning Assistance
There are several sources that note that prenuptial agreements can be a valuable way of protecting assets for children in the case of remarriages. AARP.org even suggests that people developing prenuptial agreements before a second or subsequent marriage, consider writing in clauses specific to divorce and some specific to the death of either or both spouses.
Outlining what assets will stay within which separate family line before a second wedding happens can put spouses, children and extended family members at ease.
Do It Right
When developing a prenup, there are certain things to keep in mind, in order to ensure the legality of the contract, if and when needed. According to Forbes, partners should make sure that all assets are declared to their full values. If this does not happen, the entire document can be in jeopardy.
Avoiding what can be deemed silly or unreasonable clauses is a must. For example, a prenuptial agreement cannot legally be used to stipulate what hair color a wife should maintain during the marriage.
Additionally, it is important that both parties have their own separate legal counsel when developing a marital contract. Talking to an attorney as soon as marriage is discussed is a wise idea.