Prenuptial Agreement Planning

Love is bliss... Divorce is miserable. Consider using a prenuptial agreement to minimize disputes in the unfortunate event of a divorce. A prenuptial agreement is an agreement entered into between future spouses prior to the date of their marriage, which delineates the division of assets should there be a divorce or should one spouse die.

Unfortunately, divorce cases are extremely expensive and bitter primarily because probate judges are vested with virtually unlimited authority to make a so-called reasonable allocation of assets, an award of alimony, and/or child support. Only child support can be computed with any certainty since the family court has published so-called guidelines.

Alimony and a division of assets will vary significantly many times simply depending upon the judge who hears the case. No definitive formula can be provided. You are, however, permitted to specify any applicable division of assets, if any, and alimony, if any, in an agreement signed by future spouses before the marriage. These so called prenuptial agreements have been upheld in Massachusetts repeatedly.

In DeMatteo v. DeMatteo, the husband was worth approximately $112,000,000 and the prenuptial agreement provided that the spouse to whom he was married to for seven years would receive $35,000 per year for life, health insurance, and receive the family home worth approximately $1,000,000. At the time of divorce, the wife filed suit seeking to declare the prenuptial agreement invalid. The Supreme Judicial Court of Massachusetts upheld the agreement since it had been negotiated freely prior to the marriage and there had been full disclosure of the parties assets and the rights the signing parties were giving up as against each other.

Moreover, in Austin v. Austin, the Massachusetts Appeals Court ruled that alimony can be governed by the terms of the prenuptial agreement, unless the agreement would leave one spouse destitute. Why not protect yourself with proper planning through expert advice, since over 50% of the marriages will end up in divorce and 100% of marriages will be terminated by death.

For more information about Prenuptial Agreement Planning, please contact us.