Customizing Prenups for High Net-Worth Couples in Florida
Although any couple can benefit from drafting a prenuptial agreement before getting married, it is especially important for high net-worth couples. Prenuptial agreements are not the romance killers they were once thought to be. In the event that the marriage does not work out, they can also ensure that both sides have the protection they need. Couples can also always customize their prenup to some degree, and this is also true for high net-worth couples. Below, our Florida prenuptial agreement attorney outlines customizations high net-worth couples may want to consider.
Customizing Property Division
Prenuptial agreements largely address financial issues such as property division during divorce. A few ways high net-worth couples can customize this portion of their agreement are as follows:
- Defining separate property: Property owned prior to the marriage such as investment portfolios or real estate should clearly be listed as separate assets, ensuring they remain with the original owner.
- Addressing asset appreciation: Certain assets such as real estate, stocks, and businesses may appreciate in value during the marriage. A prenup should outline whether the appreciation is marital or separate property.
- Protecting trusts and inheritances: A prenup can specifically designate that future trust interests, inheritances, or gifts are separate property, even if they are acquired during the marriage.
Customizing Business Interests
If either spouse owns a business or the couple co-owns one, a prenup can also customize these details in the following ways:
- Prevent business interruption: A prenup can stipulate that a spouse’s business, including retained earnings, shares, and future appreciation, will remain unaffected by divorce, which protects the business from valuation disputes and interruption.
- Avoid restricted management rights: A prenup can include a clause that prohibits a non-owner spouse from claiming management control or voting rights in a family business.
Customizing Alimony and Debt Management
Alimony and debts are often two of the most contentious terms in high net-worth divorce cases. A prenup can customize these issues, also. A prenup can:
- Waive or modify alimony: A prenup can provide certainty for both spouses in a high net-worth divorce by establishing a fixed payment schedule, setting a cap, or waiving it entirely.
- Assign responsibility for debt: A prenup can specify that pre-existing debts such as business debt or student loan acquired by one spouse during the marriage remains the responsibility of that spouse.
Including Protective Clauses
Protective clauses are even more important for high net-worth prenups. They often include a sunset clause that stipulates the agreement, or parts of it, will expire after a specific event such as the birth of a child, or after a certain number of years. This allows for automatic renegotiation of the contract. High net-worth couples also often contain confidentiality clauses. For example, an agreement may require mediation to settle disputes and keep private financial information confidential.
Call Our Prenuptial Agreement Attorney in Florida for Help
If you are a high net-worth individual and need to protect your future, our Florida prenuptial agreement attorney at Florida Law Advisers, P.A. can help. We can review your situation, advise on the components to include, and execute it properly so you have the intended protection. Call us now at 1 (800) 990-7763 or contact us online to schedule a consultation and to get the legal help you need.
Source:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.079.html
