Is a Pre-Nuptial Agreement Right for You? 7 Key Considerations for Fiancés in Pennsylvania

Several critical factors must be considered when engaged and planning for the future. From financial considerations to starting a family, these considerations involve significant unknowns. As a result, while it is well worth planning, it is also essential to maintain some flexibility—and perhaps even to put some contingency plans in place.

Working with a lawyer to draft a pre-nuptial agreement is an integral part of this process for many newlyweds-to-be.

Contrary to popular belief, entering a pre-nuptial agreement is not simply about “planning for divorce.” We’ll get that out of the way first. A pre-nuptial agreement can serve several purposes during a happy, healthy, and long-term marriage. With this in mind, if you have questions, it is well worth learning more, and there is no harm in scheduling a free consultation with a family lawyer who can help you make informed decisions.

Understanding the Many Benefits of a Pre-Nuptial Agreement

What are some benefits of entering into a pre-nuptial agreement with your soon-to-be spouse?

Here are some of the most common examples:

1. Financial Management (Spending, Saving, and Going Into Debt)

Many couples use pre-nuptial agreements to help ensure that they are on the same page (and will remain on the same page) about financial management. Whether you are just starting or you are already well-established in your career, it can work to enter into a pre-nuptial agreement to address considerations like:

• Monthly spending budgets for luxuries, hobbies, and other non-necessary items
• Short-term savings goals for vacations and other big-ticket items
• Long-term savings goals
• Deciding when to take out loans for vehicles, homes, and other purchases

When addressing financial management in a pre-nuptial agreement, fiancés can be as stringent or flexible as they choose. They can establish specific requirements and targets or general guidelines and mutual aspirations. The key is to be clear, as ambiguities can raise more questions than they answer and lead to disagreements that could have been avoided.

2. Addressing Debts Incurred Before the Marriage

Many couples also use pre-nuptial agreements to address financial responsibility for debts incurred before the marriage. These frequently include student loans, credit card debt, car loans, and mortgages, among other ongoing liabilities.

Here, too, fiancés can decide what their pre-nuptial agreement should say—there is no “right” or “wrong” answer. Whether each spouse will remain solely responsible for their own debts or work together to pay off their collective debts as quickly as possible, once again, clarity is the key.

3. Addressing Family Heirlooms, Retirement Accounts, and Other Assets Owned Before the Marriage

Another popular way to use a pre-nuptial agreement is to address family heirlooms, retirement accounts, and other assets owned before the marriage. For example, fiancés may agree that they will each be able to keep their most prized possessions no matter what, and they may agree that they will keep their pre-marriage retirement savings if they one day decide to divorce. Fiancés can also use a pre-nuptial agreement to avoid the application of Pennsylvania’s default “marital property” rules, which can make retirement account contributions during a marriage subject to division in the event of a divorce.

4. Addressing Future Gifts and Inheritances

Along with addressing assets owned before marriage, fiancés can also use a pre-nuptial agreement to address assets they acquire after they tie the knot. Under Pennsylvania’s default “marital property” rules, gifts and inheritances from family members are generally exempt from marital property classification (meaning that they belong exclusively to the recipient spouse). Couples can use a pre-nuptial agreement to confirm that this will be the case no matter what, or they can use their agreement to provide for joint ownership if this is what they both desire.

5. Addressing Children from Prior Relationships

If one or both fiancés have children from prior relationships, they can use their pre-nuptial agreement to address financial and other considerations related to this, too. For example, fiancés may agree that they will be able to put money away for college for their separate children, or they may agree that they will be able to include their children from a prior relationship in family gatherings without disagreement. These are just examples—and, here too, fiancés can (and should) address any specific questions or concerns they may have.

6. Business Ownership and Management

For fiancés who own a business, entering into a pre-nuptial agreement can effectively address any potential questions or concerns regarding the business’s ownership and management. Whether the goal is to grow the business together or separate family and business matters, a pre-nuptial agreement can establish clear parameters.

7. Conflict Resolution

Many couples also use pre-nuptial agreements to make provisions for conflict resolution. Even if you don’t anticipate any significant conflicts with your spouse, it can be worth establishing some guidelines just in case. For example, many couples use pre-nuptial agreements to confirm that they will both work to resolve disagreements amicably and in good faith, and many agree that they will turn to mediation if they cannot come to terms on essential issues on their own.

Again, these are just examples. Pre-nuptial agreements can address a wide range of other topics as well. Every couple’s circumstances are unique, and if you decide that a pre-nuptial agreement is proper for you, you can (and should) work closely with an experienced family lawyer to craft a deal custom-tailored to your specific circumstances. By relying on the advice of an experienced family lawyer to make informed decisions and have open and honest discussions with your fiancé, you can feel confident that you are doing the right thing for yourself and your marriage long-term.

Schedule a Free Consultation with Stroudsburg Family Lawyer Gary Saylor

Do you have questions about entering into a pre-nuptial agreement? If so, we invite you to get in touch. To schedule a free consultation with Stroudsburg family lawyer Gary Saylor, please call 570-620-5478 or request an appointment online today.