Prenups in the News: ABC News Article Discusses Baby Boomer Inspired Prenups

Posted on July 19, 2010 by David A. Gabay

ABC News and Alice Gomstyn published an article online today on Baby Boomers who are ‘encouraging’ their children to sign prenuptial agreements before they get married. For some Boomers, the motivation is to make sure the money and property they leave to their children stays in the family in the event of a divorce. For others, it is a desire to spare the children from the experience of dividing marital property in a divorce action—the process commonly known as ‘equitable distribution.’

Gomstyn’s piece is actually the third item on the subject of prenups to appear in the last few weeks. The first was a long story in the Wall Street Journal’s Weekend section published on July 3, 2010, by Mary Pilon. The second was an online item by Henry Unger of the Atlanta Journal Constitution posted on July 8, 2010.

My recent experiences with drafting prenups for clients is similar to the ones found in the ABC News piece: parents trying to protect assets and inheritances for their children. One of my clients actually was against the idea of a prenup and only sought one when her parents insisted.   Another couple actually had little or no assets themselves but wanted to protect an expected inheritance of a substantial home which belonged to one of the couple’s parents.

If you have questions or comments about prenuptial agreements, please e-mail me at David@GabayLawFirm.com

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Key Subjects to be Discussed and Included in a Prenup

Posted on July 14, 2010 by David A. Gabay

If you are going to have a prenup agreement, there are several key issues which must be discussed and resolved with your soon-to-be spouse:

1.  List all assets, liabilities, income, and expectations of gifts and inheritances.

2.  Describe how premarital debts will be paid.
 

3.  Resolve what happens to your premarital property in reference to appreciation, gains, income, rentals, dividends and proceeds of such property- in the event of death or divorce.
 

4.  Decide who, or if both of you, will own the marital residence and secondary homes in the event of death or divorce.
 

5.  Specify the status of gifts, inheritances, and trusts either spouse receives or benefits from, whether before or after marriage.
 

6.  Clarify what will happen to each type of property, whether jointly or individually owned, such as real estate, artwork and jewelry.
 

7.  Figure out alimony, maintenance, or spousal support, or provide for a waiver or property settlement instead of support (to the extent allowable by law).
 

8.  Detail death benefits, stating what you will provide for in your will.
 

9.  Decide on medical, disability, life or long-term-care insurance coverage.

Of course, there are many other issues and subjects that can or should be included in your prenup, depending on your unique situation.

For more information about the issues that should be included in a prenup, please contact me at David@GabayLawFirm.com or call 631-467-4177.

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