A prenuptial or premarital agreement, aka “prenup,” is a written contract between two people who are planning to marry and wish to have an agreement regarding their assets and finances. A prenup might, for example, establish how the spouses will share income and expenses, exempt certain property from being considered marital or divisible, or supplement an estate plan.

A properly-executed prenuptial agreement can greatly simplify the resolution of financial issues in a divorce or upon the death of one spouse. However, a prenuptial agreement can also help lay a foundation for a successful marriage by ensuring that the spouses have discussed their finances and reached accord regarding financial matters.

Connell & Gelb represents clients in the negotiation, drafting, and review of prenuptial agreements in North Carolina, as well as in actions to enforce or challenge the validity of such agreements. Attorneys Michelle Collins and Wes Gelb are both board-certified in family law by the North Carolina Bar Association and have decades of experience with complex financial issues in divorce.

The Benefits of Prenuptial Agreements

Because prenuptial agreements necessarily involve full disclosure and detailed discussion of finances, any engaged couple can benefit from negotiating a prenup. That said, there are some situations in which a prenuptial agreement can be especially beneficial, such as when engaged individuals:

• Have significant assets they wish to keep separate
• Have an interest in a professional practice, family business, or other business
• Have children from a previous relationship whose inheritance they want to protect
• Have a high net worth, or a significant disparity in net worth between them
• Have debt for which they do not want their spouse to become responsible
• Plan for one of them to make career sacrifices in order to support the other’s career or to raise a family
• Anticipate a significant inheritance during the marriage

By thinking about and planning for situations before they arise, couples are able to make a clear-headed analysis of how they would like to handle potential financial issues. In the event of a later divorce or the death of one spouse, when emotions are high, those issues are already resolved and disputes over finances are more easily avoided. This prevents not only interpersonal conflict, but the escalating legal fees that often accompany divorce.

Creating a Valid Prenuptial Agreement

In order for a prenuptial agreement to work as intended, it must be valid and enforceable. By law, a prenuptial agreement must be in writing and executed by both partners before the marriage. It must also be fair and reasonable, based on a full disclosure by each party of their respective assets and debts.

In order to avoid later allegations that the agreement was made under duress, a prenuptial agreement should be negotiated and signed well in advance of the wedding date. Both parties to the agreement should have their own legal representation to ensure that they fully understand their rights and obligations under the agreement.

The agreement can cover a wide range of financial matters, but a valid prenuptial agreement cannot contain certain provisions. To prevent a later challenge to the agreement’s validity, the agreement should not:

• Promote divorce or provide an incentive for divorce
• Attempt to establish terms of custody or support for any future children
• Require a spouse to do something illegal
• Dictate personal responsibilities or duties of the spouses
• Provide for how children should be raised

If one or more provisions in a prenuptial agreement is invalid, a court could invalidate the entire agreement if one spouse later seeks to enforce it. Couples who make the decision to protect their finances using a prenuptial agreement must invest in competent legal representation to ensure that the agreement will be effective for their needs.

Post-Nuptial Agreements

As the name implies, a post-nuptial agreement is a written, notarized agreement of the parties entered into after they have married. Unlike pre-nups, post-nuptial agreements can only address property issues—not support issues.

Skilled Legal Guidance Regarding Prenuptial Agreements

Anticipating and preventing financial conflict is beneficial for any marriage, especially ones involving significant income or assets. However, a fiancé(e) might not respond favorably to the suggestion of a prenuptial agreement. This issue, like any matter involving the intersection of personal relationships and finances, is a delicate one.

Attorneys Michelle Connell and Wes Gelb possess the legal knowledge, practical experience, and sensitive approach necessary to navigate these matters. They are skilled in negotiating clear, comprehensive prenuptial agreements, and experienced in litigating disputes regarding the validity of agreements when necessary.

To learn more about prenuptial agreements and postnuptial agreements in North Carolina, contact Connell & Gelb to schedule a consultation.