What Happens If We Have a Prenuptial Agreement?

When many couples marry, they create a prenuptial agreement. This is a legal agreement, or premarital agreement, that is a contract between you and your future spouse. Oftentimes, the prenup outlines how marital assets, debts, and financial responsibilities will be handled if the marriage ends.

Though it might not be romantic, prenup agreements are often good for clarity and protection for both parties. What happens, however, when a couple decides to break up and divorce?

Understanding how a prenup works in New York State is imperative to couples who are beginning the divorce process.

Understanding What Happens When You Sign a Prenup in New York

A prenuptial agreement is a legal contract that is signed by both spouses before they get legally married. In New York State, these agreements are governed by Domestic Relations Law §236(B)(3). This law requires that a prenup is in writing, is signed by both spouses, and is acknowledged by a notary public.

Generally, these contracts outline:

• How marital and separate property will be divided/property division

• Whether spousal support (alimony) will be paid and in what amount

• The handling of debts or future inheritances

• Rights to certain business interests or investments

• What will happen to the marital home

By addressing these topics in advance, couples reduce the uncertainty and potential conflict that can arise during a divorce.

Prenuptial Agreements are Legally Enforceable in NY State

Something that many people believe is that a prenup is set in stone. There are, however, provisions in every agreement that might not be enforced by a court. This is why it's important to talk to a lawyer when creating an agreement like this...before signing any marriage contracts. They can help with questions like What happens if one spouse doesn’t disclose all assets?

A court may refuse to enforce a prenup if:

• It was signed under duress or coercion. - If one spouse felt pressured or lacked time to seek legal advice, the legal document might be invalidated.

• It contains unconscionable terms. - Provisions that are extremely unfair or leave one spouse destitute can be struck down. New York is an equitable distribution state, and courts will ensure marital assets are split in a fair manner.

• There was a lack of full financial disclosure. - Each party must fully disclose premarital assets and debts before signing. Hidden or misrepresented assets by the other spouse can void the agreement.

• It wasn’t properly executed. - If the document was not signed and notarized in accordance with state requirements, it may be unenforceable.

To ensure enforceability, both parties are encouraged to have independent legal counsel before signing a prenup. It's best not to use the same family lawyers.

How a Prenuptial Agreement Affects Divorce Proceedings and Legal Battles

When a couple has a prenup and they file for divorce in New York, even though this is a community property state, the courts generally refer to the written contract to determine how to split marital property from personal property. Here's how it might affect the process:

1. Division of Assets - Marital Assets, not Premarital Assets

A prenup generally defines what is separate property, or assets that are owned by each spouse before the marriage or gifts/inheritance that was given to one partner. It also defines what marital property is. This includes property owned by both spouses, not one spouse's separate property. Generally, the courts will use this written agreement as a basis of its decision to divide assets.

2. Spousal Support

Most prenups also state whether or not spousal support obligations will be part of the divorce. A valid prenuptial agreement generally states how much the spouse in question gets and for how long. However, the court always has discretion to modify or reject the terms if enforcing them will result in financial issues, significant debt, or dependency on public assistance.

3. Debt Allocation

Prenups also generally split debt. However, if the debt was incurred before this marriage or in a prior marriage, that spouse is responsible for that debt. This prevents one spouse from taking on the financial obligations that are not their own.

4. Business Interests

If there is a family business involved, and if both spouses own the business, a prenup might shield the business from being divided. It can establish and clarify ownership rights.

5. Inheritance Rights

Prenuptial agreements may waive a spouse’s right to inherit under state law. Without such an agreement, a surviving spouse typically has an automatic claim to a portion of the deceased spouse’s estate.

When a Prenuptial Agreement Might Not Apply

Even a valid prenup has limitations. Certain issues — especially those involving children — cannot be predetermined. For example:

• Child custody and child support cannot be waived or limited in a prenuptial agreement.

• Courts always prioritize the best interests of the child, regardless of any prior agreement.

• A prenup that attempts to restrict parental rights or dictate custody outcomes will be disregarded.

In addition, if circumstances change drastically after marriage — such as a significant increase in one spouse’s wealth or an unforeseen health issue — the court may review the prenup’s fairness at the time of enforcement. For more information, a divorce law firm in Albany may be able to help.

When Couples Decide to Challenge or Modify a Prenuptial Agreement

A spouse who believes a prenuptial agreement is invalid can challenge it in court. Common arguments include:

• Fraud or misrepresentation

• Lack of mental capacity at the time of signing

• Undue influence or pressure

• Failure to follow required legal formalities

Alternatively, couples can choose to modify or revoke their prenup after marriage by creating a postnuptial agreement. This must also be in writing, signed, and notarized.

Benefits of Having a Prenuptial Agreement for Marital Assets

Despite misconceptions, prenuptial agreements often strengthen marriages by promoting open communication and financial transparency. For couples entering marriage with significant assets, business interests, or prior family obligations, a prenup offers peace of mind.

Key benefits include:

• Reducing conflict during divorce

• Protecting family-owned businesses or inheritances

• Clarifying financial expectations

• Saving time and legal costs in the event of separation

• Ensuring each spouse’s autonomy over personal assets

Rather than being a sign of mistrust, a prenuptial agreement can serve as a practical planning tool for the future.

How an Albany Divorce Attorney and Family Law Expert Can Help

Divorce involving a prenuptial agreement requires careful legal analysis. A skilled Albany divorce attorney can:

• Review the agreement’s terms and identify potential weaknesses

• Negotiate modifications or settlements based on current circumstances

• Represent clients in court if the prenup is disputed

• Protect their client’s rights under New York domestic relations law

The attorneys at Divorce & Family Legal, LLC in Albany are family law experts. They provide personalized guidance to individuals navigating complex divorce issues, including those involving prenuptial or postnuptial agreements.