Frank Mckenna on Unsplash
If you or your partner was previously married, there could be additional factors to consider as you draft your prenup.
So you’ve found love again, but have learned a thing or two from your previous relationships. You’re not alone! According to a recent study by Louisiana State University Professor Elizabeth R. Carter, nearly three quarters of prenups being signed are for couples where at least one partner has been previously married.
Understandably, it’s valuable to understand how a prenup may differ if either you or your partner has been previously married. Deciding to get married later in life, regardless of previous partnerships, can introduce additional considerations or complexities. Your financial position has likely improved since you were in your 20s, and you may have even reached retirement age. If you or your partner was previously married, there could be additional factors to consider such as home and business ownership, children from a prior marriage, and retirement security. Here are some ways your prenup may differ if you have been previously married:
1. Assets and Liabilities from Previous Marriages: In second marriages, individuals often bring assets and liabilities from their previous relationships. A prenup may address how these assets and debts will be managed and divided; this can include provisions for protecting assets intended for children from a previous marriage or ensuring that certain debts remain separate.
2. Children from Previous Marriages, Inheritance, and Estate Planning: If one or both spouses have children from previous marriages, the prenup may address issues related to child support and guardianship arrangements. This can ensure that children from previous relationships are provided for and that their interests are protected. Prenups for second marriages may also include provisions related to inheritance and estate planning. This can involve specifying how assets will be distributed among children or dependents, protecting inheritances, and as an additional document, establishing trusts to ensure that specific assets are preserved for designated beneficiaries.
3. Retirement Accounts, Pension Benefits, and Spousal Support: Prenups for second marriages may include provisions related to retirement accounts, pension benefits, and spousal support or alimony. This can involve determining how these assets will be divided, or whether one spouse will waive their rights to the other's retirement benefits. The agreement may also specify whether one spouse will waive their right to spousal support in the unfortunate event of divorce, or it may establish a predetermined amount or duration of support.
4. Business Ownership and Professional Practices: If one or both spouses own businesses or professional practices, the prenup may include provisions related to the division of these assets. This can involve specifying how the business will be valued and whether one spouse will have any ownership or management rights. A prenup can also help provide clarity in more unusual or complex business situations, such as if you or your partner jointly owns a business with a previous spouse.
Overall, prenuptial agreements for each marriage are tailored to the specific circumstances and priorities of the individuals involved. Regardless of whether or not you have been married previously, it’s possible to create a prenup with First that benefits and protects any and all parties involved, including you and your partner.
Sources:
Carter, Elizabeth Ruth, Are Premarital Agreements Really Unfair: An Empirical Study of Premarital Agreements (August 12, 2019). Available at SSRN: https://ssrn.com/abstract=3436412 or http://dx.doi.org/10.2139/ssrn.3436412
https://www.mummertlaw.com/blog/2021/06/prenups-and-the-second-marriage/
