Legal Professionals of Hirsch & Ehlenberger

Prenups: Can they protect future assets and income?

On Behalf of | Oct 28, 2024 | Prenups and Postnups

The short answer is yes. Prenuptial agreements are legally binding contracts between prospective spouses. They can protect any existing assets and clarify each spouse’s financial rights and responsibilities in the event of divorce. Under Virginia law, prenups can also address each party’s rights and obligations in any future property, not just existing assets. However, it is crucial to carefully craft these agreements so that they remain fair and enforceable.

What does ‘fair and enforceable’ mean?

“Fair and enforceable” generally means that the prenup should consider the circumstances of both parties and comply with certain legal requirements for the court to consider it valid. This means that both parties must:

  • Enter into the agreement willingly, without coercion or duress
  • Provide a fair and reasonable disclosure of their financial situation
  • Have a general understanding of the rights they’re potentially giving up
  • Sign the agreement well before the wedding, allowing time for consideration
  • Not have terms that are so one-sided that it leaves one party in a dire financial situation

It’s important to note that what’s considered “fair” can be subjective and may change over time. This is why courts often examine the circumstances when the parties sign the agreement and enforce it.

What future assets can you include in your prenups?

Some future assets commonly included in these agreements include:

  • Expected inheritances or family trusts
  • The growth of existing businesses and other future business interests
  • Real estate acquisitions and appreciation
  • Retirement accounts and contributions
  • Intellectual property and royalties
  • Career advancements, including bonuses and stock options
  • Potential windfalls like lottery winnings and future insurance payouts

When including these future assets in your prenup, the provisions must be clear enough to be enforceable but flexible enough to accommodate unforeseen changes in circumstances.

It’s important to protect your financial future

While discussing prenuptial agreements can feel uncomfortable, it’s a valuable step in ensuring you and your partner’s long-term security and peace of mind. Consider reaching out to a family law attorney who can guide you through the process.

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