Getting engaged is an exciting milestone filled with dreams of your life together. While you’re planning your wedding, it’s also wise to plan for your financial future as a couple.
A prenuptial agreement might not seem romantic, but it can provide clarity, protection and peace of mind for both of you. In Pennsylvania and New Jersey, these legal documents can safeguard your assets and define financial responsibilities before you say, “I do.”
What is a prenuptial agreement?
A prenuptial agreement (often called a “prenup”) is a written contract between future spouses created before marriage. This legal document outlines how to handle financial matters and property during the marriage and in the event of divorce or death. Both Pennsylvania and New Jersey recognize prenups as valuable legal tools that can:
- Protect the separate property you owned before marriage
- Shield yourself from your partner’s debts
- Define what makes up marital property
- Simplify property division if the marriage ends
- Clarify financial responsibilities during the marriage
New Jersey and several other states have adopted the Uniform Premarital and Pre-Civil Union Agreement Act, which provides specific guidelines for creating valid agreements. But in Pennsylvania, state law governs these contracts.
Benefits of a prenuptial agreement
Contrary to popular belief, prenups aren’t just for the wealthy. They benefit couples of all income levels by providing clarity about financial expectations. If you’re bringing any of these into your marriage, a prenup might be worth considering:
- Real estate or property ownership
- Assets exceeding $50,000
- Annual income over $100,000
- Business ownership interests
- Retirement benefits
- Stock options or profit-sharing plans
- Plans for advanced education while your partner works
- Inheritance expectations
Creating a prenup requires honest conversations about money, assets and financial goals. These discussions can strengthen your relationship by addressing potential conflicts before they arise. Many couples report that the process helps them understand each other’s financial values and priorities better.
Peace of mind
A well-crafted prenup provides security, knowing that both your interests are protected. This is especially important if:
- You’re entering a second marriage
- You have children from previous relationships
- You own a family business
- You have significant assets or debts
- You plan to leave your career to raise children
These protections allow you to focus on building your marriage rather than worrying about potential financial complications down the road.
What you can (and cannot) include in a prenup
In both Pennsylvania and New Jersey, prenuptial agreements can address many financial matters, but they have limitations.
What you can include:
- Rights to property owned by either spouse
- Division of assets and debts upon divorce
- Rights to buy, sell or use property during marriage
- Spousal support (alimony) terms
- Life insurance policy ownership and benefits
- Business interests and management
- Inheritance rights
What you cannot include:
- Child custody arrangements
- Child support obligations
- Religious upbringing of future children
- Personal matters unrelated to finances
- Provisions that encourage divorce
- Unconscionable terms that are grossly unfair
Understanding these boundaries helps ensure your agreement will be enforceable and prevents you from wasting time on provisions that courts will not honor.
Creating an enforceable premarital agreement
For your prenup to stand up in court, it must meet certain requirements in both Pennsylvania and New Jersey, such as:
- It must be in writing and signed by both parties
- It must be entered into voluntarily, without coercion
- Both parties must provide full and fair financial disclosure
- Each person should have independent legal representation
- There must be adequate time to review the agreement before signing
Pennsylvania courts require “clear and convincing evidence” to invalidate a prenup, making them difficult to challenge. New Jersey courts may set aside a prenup if one party was coerced into signing or if it contains “unconscionable” terms.
Starting the conversation
Discussing a prenuptial agreement with your partner might feel uncomfortable, but approaching the topic with sensitivity can make a difference. Here are ways to break the ice:
- Choose a relaxed setting away from other wedding planning discussions
- Frame it as financial planning rather than divorce planning
- Emphasize that it protects both of you
- Listen to your partner’s concerns without judgment
- Start the conversation early, not right before the wedding
Remember that how you introduce the subject often sets the tone for the entire prenuptial process, so patience and understanding are key to reaching an agreement that feels fair to both partners.
Creating a prenuptial agreement that protects both parties requires careful planning and knowledge of state-specific laws. Working with a skilled family law attorney can ensure your agreement meets all legal requirements while addressing your unique needs.