A New York prenuptial agreement is a settlement that is reached between couples who have decided to get married. This agreement explicitly stipulates the rights and obligations of both parties during the marriage. Although it also involves the domestic aspects of the marriage, it primarily consists financial and asset distribution rules in the event of divorce or death of a spouse.
Here are the 5 main reasons why you should get a Prenuptial Agreement in New York:
1) One of the common reasons for having a New York prenuptial agreement is the existence of any financial obligation incurred prior to the marriage. If either of the spouses came from a previous marriage, chances are, they are taking with them unpaid debts as well as child or spousal support obligations that they are obliged to pay from their previous divorce.
Once you get married, state laws allow creditors and even a previous spouse to collect from your marital account. Prenuptial agreements can ensure that your spouse's own financial obligations are only theirs and that you are not liable.
2) If either of the spouses owns a business with other people, state laws consider the spouse's share of profit as marital property. This means that in the event of a divorce or death, a part of the business' earnings shall also be distributed to the other spouse even if he or she does not have any contribution to the business at all. A prenuptial agreement stating that the business and all its earnings are separate properties shall protect not only the spouse's rights but also that of his or her business partners.
3) One or both of the parties may want to declare sole ownership to assets and inheritance that were acquired prior to the marriage. New York laws entitle the other spouse to one-third of your property after a marriage termination. However, you have the option to declare in a New York prenuptial agreement that a particular asset or inheritance is only yours and not of the family.
4) Aside from the separation of assets and liabilities, a prenuptial agreement may also stipulate a distribution of expenses that each couple shall address during the marriage. They may settle for a certain distribution of earnings between the spouses. They can even specify who shall support the education and other financial obligations of their future children.
5) In New York, there is a ruling in favor of a spouse who is seeking for the equitable distribution of enhanced earnings. These are increases in either of the spouse's earnings due to a promotion, degree or license attainment. To illustrate, if your spouse's went to a graduate school during the marriage and has increased his or her salary after receiving a new degree, you will become entitled to a part of what he earned after the increase. You may overturn this by explicitly stating in a New York prenuptial agreement that all increases in earnings shall be distributed separately between you and your spouse.