Pennsylvania Family Law Blog

A pre-marital agreement in Pennsylvania in Pennsylvania is a contract that clarifies what will happen to certain assets and what each party may or may not receive in the event of a divorce. Although many people shy away from pre-marital agreements; which are often referred to as pre-nuptial agreements or prenups; making such an agreement doesn’t mean you love your partner any less. A recent Huffington Post article offered several reasons why you and your partner or future spouse should consider entering into a Pennsylvania pre-marital agreement, including:

• Getting to know how your spouse handles money. From a business perspective, a marriage is about combining your assets with another person’s - much like partners who go into business together. Just like business partners, you and your partner can learn a great deal about what matters and how you each handle money by talking through money matters you want (or do not want) to cover in a prenup.
• Answering financial questions before they become problems. Financial obligations can put stress on even the strongest marriage, especially if spouses don’t know what they want, need, or expect from one another financially. A pre-nuptial agreement allows both parties an opportunity to clarify their respective rights and obligations, removing a common source of relationship breakdown.
• Making your own property decisions, not the court’s. Each party comes into a relationship with his or her own property. Over time, however, things can get mixed up so much that separating that property during a divorce becomes aggravatingly difficult. A pre-nuptial agreement allows both parties to keep separate property separate on their own terms instead of having to accept how the court chooses to make the split.

If you live in Pennsylvania and are about to be married, entering into a pre-marital agreement may be a smart course of action. To learn more, please don’t hesitate to contact the experienced Philadelphia family law attorneys at The Law Offices of Sheryl R. Rentz. Call 610-645-0100 today.

Forbes featured an article recently discussing how divorce can complicate ownership of a business, especially if the business’ value increased during the marriage. This value will typically be included in the marital assets that will need to be divided between former spouses after a business valuation in Pennsylvania is conducted. However, there are a few steps a person can take to protect the business during the divorce if they consider the business to be their separate property or if they have a greater stake in the business and may avoid having a business valuation be necessary.

Separate and marital property can be extremely complicated, but usually, one person will be entitled to a certain percentage of the other person’s business, despite whether they directly contributed to growing it or not. One of the most advantageous steps a person can take to protect their business during their divorce is to already have a pre-marital agreement in place before the marriage starts. In the agreement, details regarding both peoples’ property rights as well as other expectations would be described if the need to divorce arises.

For the pre-marital agreement to be most effective, certain elements should be covered, including:

• It should be done in writing;
• It must be done without coercion and is voluntary;
• It must show an honest admission of assets, with nothing hidden;
• It must be fair: one person can’t receive significantly more than the other;
• It must be implemented by both parties, and if possible in front of witnesses.

Both parties involved in the agreement can decide in advance what property will be considered separate or marital property and how the marital property should be split in the event of divorce.

Another option instead of a pre-marital agreement would be for a person to set up a Domestic or Foreign Asset Protection Trust. Doing so essentially transfers the ownership of separate property into the trust. This method would work for the majority of business entities, though there are a few exceptions, and would need to be done several years in advance of a divorce or else it is possible if may be able to be voided. A post-nuptial agreement can be put into place to protect a business during a divorce in Pennsylvania; however, they are challenged frequently.

Sheryl R. Rentz is a skilled Philadelphia pre-marital agreement attorney who can answer any questions you may have about the Pennsylvania divorce process, including questions regarding property division, business valuations, pre-marital agreements, and more. Call 610-645-0100 to learn how The Law Offices of Sheryl R. Rentz can help you.

According to The Detroit Free Press, a survey was recently conducted that found many unmarried couples who live together are increasingly deciding to sign a cohabitation agreement to give them protection should their relationship end.

The American Academy of Matrimonial Lawyers (AAML) is a grouping of approximately 1,600 divorce attorneys and conducted the survey amongst its members. The survey discovered about 48 percent have seen a rise in the number of couples who are “duking it out in court” during the past five years. Of those, about 39 percent report an increase in the number of couples who chose to have a cohabitation agreement if their arrangement is outside of legally recognized marriages.

Ken Altshuler, the president-elect of AAML, says the agreements are “on the cutting edge of relationships today,” as many couples are now deciding not to marry or are entering into civil unions.

A cohabitation agreement is similar to a premarital agreement, which some couples chose to create before their marriage to ensure their property and assets are divided according to their wishes if they divorce. A cohabitation agreement offers protection for unmarried heterosexual couples or same-sex couples who reside together in the event their relationship ends. Generally, a cohabitation agreement allows an unmarried couple to regulate issues such as child custody, property arrangements, financial support, and debts if their cohabitation breaks down. Additionally, the agreement offers some protection from litigation. Especially relevant during these difficult economic times, a cohabitation agreement can help protect an individual against payment of their partner’s debt.

While it may be uncomfortable for you to discuss whether you and your future spouse or partner should create a cohabitation or premarital agreement, doing so can save you money and time in the future if your relationship ceases. The Philadelphia family law attorneys at The Law Offices of Sheryl R. Rentz can help you draft a premarital agreement that is fair and satisfies both you and your future spouse. To learn more about premarital agreements in PA, call 610-645-0100 today.

The Huffington Post reports that Elizabeth Hurley and her husband Arun Nayar are divorcing after three years of marriage. However, Hurley disregarded one major precaution most celebrities take before marrying: having a pre-nuptial agreement.

Hurley could potentially lose a significant amount of her fortune because of this oversight. The British actress is said to have over £13 million (over $17 million USD), including a £4.3 million (approximately $5.7 million USD) mansion in South-West England as well as a £2.5 million (about $3.3 million USD) townhouse in London, which her ex-boyfriend Hugh Grant co-owns.

A source close to the soon-to-be divorced couple says that a pre-nuptial agreement would have been a deal breaker for Nayar.

It can be uncomfortable to discuss having a pre-nuptial agreement with your significant other before marriage. However, it can help both you and your future spouse plan ahead for unexpected events in the future, which is a wise thing to do, no matter a person’s social or economic standing, or whether they are a celebrity or not. Besides offering asset protection, a pre-nuptial agreement can also protect one spouse from the other’s separate debts. Additionally, the agreement can protect a spouse’s pension benefits and retirement funds from the other.

In the case of Elizabeth Hurley, when a spouse is wealthier than the other and no pre-nuptial agreement was made prior to the marriage, the spouse that is poorer can make a claim on a portion of the richer spouse’s money, or even demand to receive other assets such as a house.

At The Law Offices of Sheryl R. Rentz, our Pennsylvania family law attorneys can work with you and your future spouse to draft a pre-nuptial agreement that is fair and satisfies both parties. Call us at 610-645-0100 today to schedule a free consultation and to learn more about pre-nuptial agreements in Pennsylvania.

A San Francisco Chronicle article has brought to light the recent increase in the number of pre-marital agreements (also referred to as a pre-nuptial agreement or prenuptial) currently being filed by Americans. Just a few decades ago, pre-marital agreements were adopted almost solely by the wealthy. However, in today’s modern age, more and more middle class couples are choosing to enter in pre-marital agreements prior to officially tying the knot.

Interestingly, a recent poll by the American Academy of Matrimonial Lawyers (AAML) discovered that women are typically the ones to initiate a pre-marital agreement, doing so about 52% of the time, according to a survey of divorce lawyers in the United States. Speculatively, this could be attributed to the fact that the number of working wives has steadily increased over the years. According to the U.S. Department of Labor, about 46% of the workforce is now comprised of women, with numbers continually rising each year. With a greater number of women working and earning larger salaries than they did in years’ past, women have generally developed an increasingly higher interest in protecting their assets, which a pre-marital agreement offers.

A pre-marital agreement can include more than just asset protection. Such agreements can protect a person from their spouse’s separate debts, and can also protect one spouse’s retirement funds and pension benefits from the other, an very good step to take given today’s dire economic climate. The poll by AAML actually revealed a 36% increase in the number of couples who decided to include clauses dealing with retirement or pension benefits in their pre-marital agreement.

While it can be rather unsettling to discuss pre-marital agreement details with your significant other, an experienced and highly skilled Pennsylvania family law attorney can help you and your future spouse plan ahead for the contingencies of life. No matter your social or economic stratum, it is always a good idea to plan for the future, and signing a Pennsylvania pre-marital agreement can help prevent a costly dispute in the event that your marriage doesn’t work out for the best. The Pennsylvania family law attorneys at The Law Offices of Sheryl R. Rentz can help negotiate a fair pre-marital agreement for you and your spouse. Call our office today at 610-645-0100 for a free consultation and to find out more about Pennsylvania pre-marital agreements.

As an experienced Philadelphia pre-marital agreements lawyer, I have always emphasized the importance of a prenuptial agreement. A pre-marital agreement, also known as a prenuptial, ante-nuptial or a pre-nuptial agreement, is a legal document that is signed and agreed upon by both parties before legally entering into marriage. These documents are in no way mandatory to get married, but many couples are increasingly entering into such an agreement so that there is a strong safeguard in place should anything happen.

A recent article by Associated Press writer Candice Choi beautifully explains why a prenuptial agreement, or a “prenup” as it is commonly known, is a smart money move. Choi explains that with so many more blended families and dual income households these days, family finances have become an extremely complex issue. A prenuptial agreement, says Choi, can minimize the potential for a messy divorce by spelling out each party’s rights to assets brought into the marriage as well as those acquired as a couple.

Although the last thing a couple wants to think about is a Pennsylvania divorce, statistically, the odds are stacked up against marriage. About 40 percent of marriages in recent years have ended in divorce. So, if you are getting married, here are some things to consider:

• Is a prenup right for you?
• Do you need one?
• How much will it cost?
• What are the areas a prenuptial agreement should cover?
• Is there anything a prenup cannot or will not cover?
• How easy is it to invalidate the agreement?
• How often should you update a prenup?

There are many more questions that will arise when the time comes. If you are looking to draft or enter into a prenuptial agreement, please remember that it should be drafted and filed by an experienced pre-marital agreements lawyer. Each member of the relationship should be represented by such an attorney. If you have any questions regarding prenuptial agreements or the process, please contact the Law Offices of Sheryl R. Rentz. We are fully familiar with the particulars of each state’s premarital and co-habitation agreement laws. We offer free, comprehensive and confidential consultations.