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The impact of a prenuptial agreement in a Hackensack high-asset divorce can be significant. While these contracts apply regardless of the value of the marital estate, the stakes are much higher when large amounts of money are involved.
If you are considering divorce and have executed a premarital or prenuptial agreement, your choice of attorney is important. A dedicated high-net-worth divorce lawyer at O’Cathain Law Group Family Law Department will protect your rights and ensure you are treated fairly by the court.
There are plenty of reasons why a high-asset couple in Hackensack might rely on a prenuptial agreement. These contracts offer flexibility, allowing both parties to negotiate the terms that work best under the circumstances. Some of the reasons to get a prenup include:
There are also some things a prenuptial agreement cannot address. While property questions are usually on the table, anything related to child custody or parenting time is not. The court is required to deal with all custody or parenting time issues with the child’s best interest in mind. In other words, a judge might determine that an agreement between the parties is not what is best for their children.
One of the biggest impacts prenups can have during a high-asset divorce in Hackensack is during property division. New Jersey has a legal standard known as equitable distribution, which requires a judge to split up property between spouses in a fair manner. This is the case even if the result is an unequal division between both parties. It is at the discretion of the court to determine what is, in fact, fair.
When a couple adopts a pre-marital or prenuptial agreement, the terms of the contract can supersede state law. That means the equitable distribution standard may not apply as long as the agreement was executed without coercion or duress.
Another complex factor is the potential for parties to alter the status of specific valuable assets. Remember: the court is only empowered to divide marital property, meaning the things owned by each individual remain in their control. It is possible to designate valuable assets—including small businesses—as personal property.
Prenuptial contracts have strict requirements; failing to abide by them can render a prenup unenforceable. The document must be in writing and signed by both parties.
To be enforceable, both sides must meet certain standards that exist to ensure fairness. First, an agreement is not valid if it is signed through coercion or duress. To contract away certain rights under the law, a person must do so willingly.
There is also the issue of disclosure to consider. A person cannot make a genuine decision if they do not have a clear picture of the other party’s assets and liabilities. If one spouse is not forthcoming about the things they own or the obligations they owe, a judge could invalidate their agreement.
While the impact of prenuptial agreements in Hackensack high-asset divorces can be significant, they are only enforceable when the parties fully comply with the law. Our dedicated and experienced family lawyers at the O’Cathain Law Group Family Law Department can assist with drafting these agreements so that the court will accept them. Call today to get started, and to Move Forward confidently.