Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About

Trending Topics

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni

    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor & Employment
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations

    Industries

    View All

    • Cannabis
    • Consumer
    • Energy
    • Entertainment
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Non Profit
    • Real Estate
    • Technology

    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    1. Home
    2. Insights
    3. Articles
    4. The importance of premarital agreements in modern societyArticles

    Article

    The importance of premarital agreements in modern society

    March 5, 2019

    Share

    By Kaitlyn Barnett

    Premarital agreements—customarily associated with celebrities and the super wealthy—are not only for the rich and famous but also can provide numerous benefits to anyone with personal assets, liabilities, property or children from a previous relationship.

    Premarital agreements—customarily associated with celebrities and the super wealthy—are not only for the rich and famous but also can provide numerous benefits to anyone with personal assets, liabilities, property or children from a previous relationship. Premarital agreements, also known as prenuptial agreements, are legally binding contracts that predetermine how assets and financial responsibilities will be divided among spouses in the event of a divorce and upon death.

    As family structures in modern society continue to become more complex and diverse, premarital agreements become an increasingly important planning technique that should be considered by spouses prior to marriage.

    In considering whether or not to enter a premarital agreement, spouses should weigh the advantages and disadvantages associated with such agreements.

    Advantages of premarital agreements.

    • Clarification of financial responsibilities. Premarital agreements provide clarification of the financial rights and responsibilities of each party during and after a marriage. Specifically, couples can determine what qualifies as marital property and what qualifies as separate property. By dealing with these matters in advance of the marriage, unreasonable expectations can be better managed and/or eliminated, subsequently reducing the likelihood of future financial conflict. Additionally, family heirlooms or separate property can be maintained and distributed accordingly in the event of divorce.

    • Creditor and debt protection. Marriage not only results in blending family, but also finances, assets and, more-often-then-not, each spouse’s debts and liabilities. Premarital agreements can provide financial protection from the unwanted debts of the other spouse, which can include student loan debt, taxes and credit card debt.

    • Control of spousal support. Family law is highly unpredictable in determining spousal support and maintenance in the event of a divorce; however, premarital agreements provide spouses the opportunity to eliminate this uncertainty. Through the use of premarital agreements, spouses have the opportunity to agree upon an amount of spousal maintenance or eliminate it all together.

    • Decreased litigation expenses. Divorce can be expensive and lengthy. Premarital agreements allow spouses the ability to address the most common legal hurdles in divorce, which can bring a quicker resolution to the process and avoid a potentially lengthy court battle.

    Disadvantages of premarital agreements.

    • Inability to address child support. Although premarital agreements enable spouses to come to an agreement regarding spousal maintenance, premarital agreements cannot be used to set future parenting time and legal decision-making or child support. Child-related matters are determined by the best interests of the child by a court of competent jurisdiction.

    • Difficult topics to discuss. Although marriage is a partnership that goes beyond romance and includes serious issues such as property and finances, for some couples, discussing these matters might put a blemish on this exciting time. Often discussing the topics of marital property, financial obligations and pre-marital debts can be difficult, stressful and cause conflict between couples.

    Trusts And Estates

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • © 2023 Nixon Peabody. All rights reserved
    • Privacy Policy
    • Terms of Use
    • Statement of Client Rights
    • Supplier Diversity Program
    • Nixon Peabody International LLC
    • PAL