Individuals with all types of income and asset levels may consider prenuptial agreements. Prenups generally do not require owning assets based on a specific dollar value. You may, however, wish to discuss financial matters with your future spouse if you anticipate acquiring significant wealth in the future.
As explained by CNN.com, couples may sign prenups to protect themselves from an imbalance of wealth that their marriages might create. Getting married while still attending medical school, for example, means that you or a partner have reasonable expectations of a much higher income after the wedding.
Determining whether you may need a prenup
GoBankingRates reports that prenups could help individuals with children from a former marriage. With an agreement in place, you and your future spouse may outline a plan for a child’s rights to your existing assets. If one spouse plans to stay at home, a prenup may also include terms for splitting assets or income to make up for managing the household.
Business owners may have good reason to discuss prenups. New Jersey’s statutes consider income and earnings accrued during a marriage as belonging to both spouses. A prenup may protect a business from an ex-spouse taking part of it after a divorce.
Protecting property during a New Jersey divorce
Under New Jersey’s equitable distribution laws, couples must divide their marital property between them fairly. Separate property, however, does not divide between two divorcing spouses. A prenuptial agreement could clarify terms that may override the Garden State court’s standard method for determining fairness in a divorce.
If you foresee substantial earnings in your future, you and your soon-to-be spouse may create a plan for dividing assets that you purchase during your marriage. Gifts and inheritances, however, belong to the individual who receives them and do not divide.