Skoloff & Wolfe co-managing partner, Jonathan Wolfe, recently was a guest on Lowenstein Sandler LLP’s Trusts & Estates Podcast episode The $6 Million Wedding. The topic of conversation was prenuptial agreements and how advisors can most effectively help their clients navigate through this often uncomfortable topic, including how assets are divided in the event of death and divorce.
Mr. Wolfe was the guest of Lowenstein Sandler LLP’s Warren Racusin, Chair, Trusts & Estates, and Eric Weinstock, Senior Counsel, Trusts & Estates.
The brief, informative, and entertaining podcast laid out just some of the considerations that the engaged parties (and potentially their parents) must consider when seeking protection by using a prenuptial agreement. Using the “$6 million wedding” as a launch point for the podcast, the panelists cited some of the challenges and misconceptions that many people have regarding prenuptial agreements. For example:
Fear of discussing the prenuptial in advance is a mistake
According to Mr. Wolfe, the fear of bringing up the topic of a prenup in the first place is a hurdle that couples need to clear. And the earlier the better. While no rational couple wants to think about divorce before they’re even married, it’s better to communicate with each other to head off potential problems down the road. And just because one party is the catalyst for the agreement doesn’t mean that the other party will not be able to seek protections by way of their agreement. In fact, a prenup can be structured to be mutually beneficial for both spouses should divorce be in their future.
Act early, because no two prenuptial agreements are the same
Couples who are caught up in the busy last stages of planning for a wedding often make the mistake of waiting until days before the wedding to focus on their prenuptial agreement. However, every couple’s financial situation is different, and prenups are not off-the-shelf documents. Act early to avoid a host of potential problems – and stress – as the wedding approaches.
Is a prenup agreement right for you? Check out the podcast
Whether you’re the future husband or wife, or the parent of either party, listening to the 22-minute podcast will give you a better sense of the process, timing, financial disclosures, and legal considerations of creating a prenuptial agreement.