PRENUPTIAL AGREEMENTS ARE ESTATE AND BUSINESS PLANNING TOOLS

By Associate Attorney Ashley N. Bonomini

Marriage is one of life's most important commitments, but it is also a legal and financial partnership. When most people think of prenuptial agreements, they think of divorce planning, but it is so much more than that.  A prenuptial agreement can be a foundational component of a sound estate and business plan.

While discussing a prenuptial agreement may not seem romantic, it provides couples with an opportunity to establish clear expectations regarding financial matters and protect their interests before entering into marriage. One of the primary benefits of a prenuptial agreement is the protection of premarital assets. Individuals entering a marriage often have property they wish to keep separate, such as real estate, investment accounts, retirement savings, family inheritances, or ownership interests in a business.

Many people are shocked to learn that, immediately upon marriage, your spouse has automatic rights as it relates to inheritance!  You cannot legally disinherit your spouse in North Carolina or leave them less than the statutory “elective share,” which is a percentage of your estate based on the number of years you are married, unless you have a prenuptial agreement.

Therefore, individuals who expect to receive an inheritance or who wish to preserve family assets for children from a prior relationship often use prenuptial agreements as part of their estate planning strategy.  A prenup can help ensure that inherited assets remain separate property and can clarify how assets will be distributed in conjunction with a comprehensive estate plan. This is significant for individuals entering a second (or third) marriage or those with children from prior relationships who want to preserve assets intended for their children or other beneficiaries while balancing the financial needs of a new spouse.

Likewise, prenuptial agreements are particularly valuable for business owners. A business may represent years of hard work and substantial financial investment. Without a prenup, questions may arise regarding the appreciation in value of the business during the marriage or whether marital efforts contributed to its growth. A carefully drafted agreement can help protect the business and minimize the risk of costly litigation. This is vital for business owners looking to protect their business and livelihood from distribution to a spouse as part of a divorce or at death.

To be enforceable in North Carolina, a prenuptial agreement must be in writing and signed by both parties before the marriage. The agreement should be entered into voluntarily, and both parties should have adequate time to review the terms and seek independent legal counsel. Waiting until just days before a wedding can create unnecessary pressure and may increase the likelihood of future challenges to the validity of the agreement.

Ultimately, a prenuptial agreement is not just about planning for divorce. Instead, it is a proactive planning tool that allows couples to make informed decisions about their financial future.

Jesson & Rains, PLLC, has recently added the preparation of prenuptial agreements to our service offerings.  We understand that discussing a prenuptial agreement can be a sensitive topic. Our attorneys work closely with clients to create customized agreements that protect their interests while promoting fairness, transparency, and peace of mind. Whether you are entering your first marriage, a second marriage, own a business, have significant assets, or simply want to establish clear financial expectations, our team can guide you through the process with professionalism and care.