Marriage, in some ways, is very similar to a businesses partnership, with each partner contributing different skills and benefits in order to achieve success and happiness. Often times one spouse contributes the majority of the economic assets, while the other spouse cares for the family and the home. In both marriages and business partnerships, the partners depend on one another. For these reasons, there may be a need for a prenuptial agreement. Under Pennsylvania law, a premarital agreement is defined as "an agreement between prospective spouses made in contemplation of marriage and to be effective upon marriage."
In most cases, two young individuals set to marry for the first time with few assets are not prime candidates for a premarital agreement. However, where it is likely that one spouse may be the recipient of large gifts or inheritances, a prenuptial agreement may prove useful. Premarital agreements are also common when there is a second marriage in which one of the parties has acquired assets during the earlier marriage and there are children from the first marriage. Usually, that individual will want to be certain that he or she is entering a long term relationship, while protecting his or her children and without jeopardizing his or her assets in the event of death or divorce.
There are two major issues that are typically addressed in a prenuptial agreement: what happens upon one spouse's death and what occurs should the marriage end. For example, under Pennsylvania law, if a married individual dies without any testamentary provisions, the surviving spouse is entitled to receive either one half or one third of the decedent's estate, depending on the number of children in the marriage. A premarital agreement may make an alteration to this arrangement. The binding and contractual terms of premarital agreements can eliminate many of the concerns facing individuals entering into a marriage.
Creation of a valid premarital agreement requires full disclosure of all your assets and liabilities to your future spouse. Additionally, a prenuptial agreement should be signed at least one month prior to the wedding date. When considering what you would like in the prenuptial agreement, consider the following questions:
