Many people don't think of prenuptial agreements as a part of their estate plan. However, if you don't have a properly drafted prenuptial agreement (or postnuptial agreement for those already married), the very best estate plan can be undone.
While nobody likes to think about a marriage not working out, determining which assets are your separate property and how community property should be divided will be easier now than it would be later, should your marriage end in divorce or upon your death. At Morris, Hall & Kinghorn, P.L.L.C., our lawyers draft and review both prenuptial and postnuptial agreements for clients in Arizona and New Mexico.
Do I Need a Prenuptial Agreement?
Not everyone needs a prenuptial agreement. However, if you have children from a prior marriage or significant separate property that you are bringing to your marriage, you should strongly consider using a prenuptial agreement, especially in community property states like Arizona and New Mexico.
Many people think that separate property is not subject to division in the event of a future divorce. Unfortunately, that is not always true. Under community property laws, it's very easy for your separate property to be converted into community property. This can change the distribution of your estate plan.
Prenuptial Agreements Help Avoid Conflict When a Spouse Dies
In blended families, when a person dies, it's important to avoid confusion over which assets will go to the deceased's heirs and which assets go to the survivor's heirs. Otherwise, members of your families may end up going to court to challenge the rights of heirs. In a worst-case scenario, your heirs could end up being disinherited in favor of your spouse's heirs.
Like all other legal documents, prenuptial agreements must be written properly or you will lose the intent of what you wanted to do. For example, you need very specific language in your agreement to determine how retirement assets such as 401(k) accounts, IRA accounts and pensions will be distributed.
What Is the Difference Between Prenuptial and Postnuptial Agreements?
A prenuptial agreement is an agreement you and your intended spouse enter into before marriage. A postnuptial agreement is an agreement you enter into after marriage.
For more information, contact us to arrange a consultation with an experienced estate planning attorney experienced in prenuptial agreements, at a location near you. Our offices are located in Phoenix, Tucson, Albuquerque and communities throughout Arizona and New Mexico.
