What is a Prenuptial Agreement, and Are They Enforceable in Pennsylvania?
A prenuptial agreement is a business contract between two spouses-to-be that outlines how assets, property, and debt will be divided in the event of divorce. The Commonwealth of Pennsylvania does recognize prenuptial agreements, and they are most often enforced by the court.
Our Harrisburg, PA, family law attorneys are here to discuss what should be included in an effective prenuptial agreement and what factors determine enforceability.
Prenuptial Agreements: An Overview
A prenuptial agreement (also known as a “prenup” or “antenuptial” agreement) allows couples to agree on how both assets and liabilities will be divided if their marital union is terminated. There is no “cookie cutter” prenup, so a couple can include terms that pertain specifically to their situation. For instance, some pre-nuptials choose to include a clause that states that the agreement will be void if the marriage does not last a certain amount of time.
Marital assets are any assets that the couple obtained during the marriage, while separate or non-marital property is any property that a person obtained prior to marriage through a gift or inheritance. Generally, while marital assets are subject to division, separate assets will remain the property of each individual. A prenup allows you to indicate how both marital and separate assets will be dispersed upon divorce.
Keep in mind that you will want to sign a prenup at least six months before your nuptials. That way, you will not feel pressured to sign an agreement simply because your wedding day is right around the corner.
What Should a Prenuptial Agreement Include?
A prenuptial agreement should contain the following information but may contain other provisions as the couple sees fit:
Disclosure of Financial Information
Couples must disclose the entirety of their financial picture, including income, assets, and liabilities. If a person chooses to leave something out, a prenup may be voided.
Assets and Income
It is important that you disclose any real or personal property, your annual income, and any income that you earn from rental properties.
Debts and Liabilities
Couples should disclose all debts taken out in their name, and take into account any future debts (i.e., mortgage) that would be owned jointly.
Inheritance or Gifts
Although a gift or inheritance is considered separate property, if you are expecting a large inheritance from a family member, it may be a good idea to include a clause pertaining to inheritances in your prenup.
Alimony or Spousal Support
In the event of the dissolution of your union, a prenup should indicate the length of time and amount of alimony that will be paid. Although Pennsylvania law does stipulate certain factors that the court will examine in determining alimony, by signing a prenup, you can avoid court intervention.
Business Interests
A spouse that owns a business prior to marriage may want to protect their interest in the company. If the other spouse does contribute financially to the business during the marriage, a prenup should indicate if the individual will be eligible to receive a share of the business upon divorce.
Enforceability of a Prenup in Harrisburg, PA
Even though a prenuptial agreement is enforced in most circumstances in Pennsylvania, state law does include two circumstances in which a prenup may not be enforceable:
- If either party did not execute the agreement voluntarily or
- If either party did not disclose all of their property or financial obligations
If a spouse requests that the prenup be set aside and either of these two circumstances apply, then the prenup may be deemed invalid. If that is the case, upon divorce, marital property and debts will be divided based solely on Pennsylvania law.
Speak with a Harrisburg, PA, Family Law Attorney Today
A prenuptial agreement lays the foundation of what will happen if your marriage dissolves. Although a prenup comes with a certain stigma, it is important that you protect your property before tying the knot. If you are interested in preparing a prenup, our Harrisburg, PA, family law attorneys are ready to assist you. To schedule a meeting with an attorney, contact us online or by phone today.