When getting married, the last thing you may think about is what debt your future spouse may be bringing into the marriage. While often overlooked, many couples do bring credit card balances, student loans, and other debt into a marriage. By signing a prenuptial, you can determine how pre-existing liabilities will be handled, keeping you from taking on the financial burden of your spouse-to-be. If you are interested in learning more about prenuptial agreements, our Johnstown, PA, prenuptial agreement attorneys are happy to assist you.
An Overview of Pennsylvania Prenuptial Agreements
A prenuptial agreement, or “prenup,” allows couples to determine how assets and liabilities will be divided in the event of divorce. Each prenup is unique, with couples deciding what terms will be addressed within their agreement. However, the prenup will distinguish between how marital and separate property will be distributed. (Separate property includes any property that is obtained prior to marriage, such as inheritances, gifts, insurance settlements, and personal injury awards).
At Silverman, Tokarsky & Forman, L.L.C., our prenuptial agreement lawyers recommend that you sign a prenup at least six months prior to tying the knot. By taking care of it well ahead of the marriage, you can make a more rational decision.
Are Prenup Agreements Enforceable in Johnstown, PA?
In Pennsylvania, a prenuptial agreement must be in writing and signed by both parties. Under most circumstances, courts will enforce the terms of a prenup, unless the following is present:
- If either party was under duress or coercion in signing the agreement, OR
- If either party hid assets, liabilities, or other financial information. If a full financial disclosure was not provided, the other party must have voluntarily and expressly waived this disclosure in writing
If your prenup is deemed invalid, then property distribution will be based on Pennsylvania law in the event of divorce. Before you sign anything, you should speak with our family law attorneys to ensure that your agreement will hold up in court.
Financial Matters Addressed in a Prenup
Most standard prenuptial agreements address the following:
Disclosure of Financial Information
Couples are required to disclose their income, assets, liabilities, and other financial information. Failure to disclose this information could result in your prenup agreement being void.
Assets and Income
It is important to disclose the following in your prenup:
- Checking and savings accounts
- Investment accounts
- Certificates of deposit (CDs)
- Retirement accounts: 401(k)s, IRAs (Traditional and Roth), 403 (b)s, 457(b)s, and pensions
- Annual income, including employment income and any passive income (i.e., rental properties or interest earned from investments)
Debts and Liabilities
You and your spouse should disclose all debts taken out in your name, including the starting date of each loan, the date of your last payment, and the total balance for each. These separate debts should be distinguished from jointly owned debts, such as a mortgage.
Business Interests
If either spouse owns a business prior to the marriage, the prenup should designate these businesses as separate property. However, if the other spouse financially contributes to a particular business, then the prenup should stipulate how to handle business profits if the marriage is terminated.
Inheritance or Gifts
Although this is separate property by default, it is still wise to designate ownership of a large inheritance or other gift you have received or expect to receive from a family member.
Alimony or Spousal Support
Many couples choose to make provisions for alimony, or spousal support, in a prenuptial agreement. This will include the length of time alimony will be paid and the amount of the support payments. Although Pennsylvania courts often determine spousal support payments following a divorce, a well-executed prenup can allow you to bypass court involvement.
Consult with Our Johnstown, PA, Prenuptial Agreement Lawyers
Even though many people see signing a prenuptial agreement as a bad omen, this is far from the truth. A well-executed prenup allows you to protect your assets while setting financial expectations with your partner. At Silverman Tokarsky & Forman, our Johnstown, PA, prenuptial agreement attorneys feel honored to help you lay the groundwork for a loving and stable marriage. To arrange your consultation, our office can be reached online or by calling (814) 536-8600.
