For a couple with a high net worth, a prenuptial agreement is an important step to take to safeguard your finances and your future in the event of a divorce. A high net worth divorce can quickly turn contentious due to the amount of wealth and assets involved. You may also need to hire additional support during the divorce, including a financial advisor, a forensic accountant, and other professionals as is deemed necessary.
Establishing a prenuptial agreement beforehand can help you save both time and money and protect your reputation in the event of a divorce. Today, we go over why you should establish a prenup if you have a substantial amount of wealth or are a high-profile couple and what should be included.
How a Prenup Can Protect Your Net Worth
When a couple goes through a divorce in Rhode Island, there are many issues that must be resolved, including spousal support and property division. You can have these matters figured out for you by the court; however, this resolution may not line up with your best interests. If a valid prenup has been established beforehand, then potential financial issues have already been discussed. A well crafted prenup will contain all the information about how your property and assets will be divided in the event of a divorce. It will also detail which assets should be protected and how to ensure both spouses will remain financially secure.
How to Draft a High-Net Worth Prenup
You will want to hire a reputable lawyer familiar with high net worth divorce concerns to help you draft your prenup. A high-net worth prenup may want to address one or more of the following matters:
- Each spouse’s rights and obligations regarding separate and marital property
- Each spouse’s right to buy, use, control, transfer, sell, or dispose of any property
- What spousal support will entail
- Division of assets, property, and debts upon death or divorce
- How businesses will or will not be divided in the event of a divorce
- Each spouse’s entitlement to death benefits
When drafting your prenup, you want to make sure it is legally enforceable. Rhode Island uses the Uniform Prenuptial Agreement Act (UPAA) standard to establish certain guidelines and requirements for prenups in the state. A prenup must be fair (it cannot be one-sided) and entered voluntarily. Additionally, each spouse must be fair and reasonable when disclosing information about their assets and debts.
If you wish to change your prenup, all changes must be in writing or they are not enforceable. Also, child custody issues cannot be considered in a prenup in Rhode Island, so you will need to address those matters in another way, either with the court’s assistance, a lawyer’s help, or mediation.
Consult with an Experienced Divorce Attorney at Our Firm About Your Prenup
Navigating a high net worth divorce can be complicated but putting a prenuptial agreement in place can save you time and money in the event you must pursue one in the future. If you have any questions or concerns about how to prepare a valid prenup in Rhode Island, an experienced divorce attorney from our firm can provide you with assistance. Contact McIntyre Tate LLP to discuss your legal matter.
Reach out to our office online or call us at (401) 351-7700 to secure a consultation.