Some New Jersey couples who are planning to get married may be worried that a prenuptial agreement will increase the likelihood that they will get divorced or that they will have to reveal things they would rather not such as bankruptcies or debt. However, creating a prenup can lead to important conversations about finances and can protect people in case the marriage ends.
A prenup can be important if one person earns more than another because it can specify alimony arrangements. This may be even more important if one spouse leaves work to care for children. This may significantly affect the assets this person accumulates and may make it difficult to return to the workforce.
While assets brought into the marriage may be considered individual property in a divorce, a prenup can help ensure that this is the case. If a person is going into the marriage with significant debt or if one person is likely to run up debt, a prenup may protect the other spouse from taking on those debts in a divorce. If one person owns a business, the prenup can protect that business from the other spouse in a divorce.
It is important that both people get good legal counsel and that the prenup is prepared correctly or it could be vulnerable to challenges. Even if a couple does not have a prenup, they might still be able to negotiate an agreement for property division that is mutually beneficial for both of them financially. This may often lead to the best outcome for many couples, but it does require cooperation from both of them. One advantage is that the couple might be able to agree on creative solutions that suit their unique situation. However, if these negotiations break down, they might have to turn to litigation instead.