Can a prenuptial agreement cover future assets?

On Behalf of | Sep 21, 2023 | Prenuptial Agreements |

A prenuptial agreement, or a prenup, is a powerful tool to protect each spouse and their assets from the consequences of unanticipated life events, such as a divorce or the death of one of the spouses. Moreover, the agreement can be an effective asset protection not only for existing properties but also for future assets.

Qualifying properties acquired during the marriage

Prenups are commonly drafted to protect each party’s separate existing properties in case of a divorce or death. However, since spouses are typically expected to acquire property during the marriage, prenup parties also include those assets in the agreement terms, even if they have not yet acquired them.

Sealing the deal with specific agreement details

While parties can simply say “future assets” or “properties acquired during the marriage” when drafting the prenup terms, these phrases are too vague and can still cause disputes. The best practice would be to describe the future asset as specifically as possible to leave no room for interpretation.

For instance, instead of simply saying future asset, parties can use particular phrases, such as future business interests, future gifts or inheritances, future income and so on.

Deciding whether a prenup is for you

Preparing for the unpredictable is a wise practice. While no one expects their marriage to end, drafting a prenup can be a form of reassurance in case the union does not work out. Prenups allow couples to have solutions ready for disputes that may or may not happen, protecting themselves and their assets along the way. If this is a priority for you, then a prenup may just be the protection you need.


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