Prenuptial Agreement / Agreement in Contemplation of Marriage (Wife with Substantial Assets)

PRENUPTIAL AGREEMENT / AGREEMENT IN CONTEMPLATION OF MARRIAGE
(WIFE WITH SUBSTANTIAL ASSETS)

About this Form: The Agreement in Contemplation of Marriage is designed to outline a Prospective Husband and Prospective Wife's respective property rights during the course of marriage and upon termination of the marriage due to divorce or death. This Agreement is intended to be entered into only after careful consideration of both parties. It should be executed prior to the marriage and the form contains an additional Ratification of the Agreement to be executed shortly after the marriage takes place.

This Agreement in Contemplation of Marriage provides substantial protection of property rights for both Prospective Husband and Prospective Wife. It provides schedules for specifically outlining all property brought into the marriage by each party and allows each respective party to reserve and retain ownership and control of that property during the course of the marriage, as well as after termination of the marriage. It also allows the respective parties to retain ownership and control over any income or profit derived from this separate property which may accrue during the course of the marriage. These provisions prevent any presumption that this separate property has become marital/community property during the marriage.

The Agreement also deals with all debts or liabilities brought into the marriage by the Prospective Husband and Prospective Wife. During the course of the marriage and upon termination of the marriage, all debts or liabilities brought into the marriage remain the separate and individual responsibility of the respective party holding the liability at the time of marriage.

Although this Agreement provides substantial protection for the Prospective Husband and the Prospective Wife's separate property, it also allows the couple to avail themselves of the benefits of filing joint marital tax returns during the course of the marriage without creating the presumption that income from the respective parties has become marital/community property. Additionally, this Agreement allows for the parties to maintain joint bank accounts, which may be considered marital/community property, upon agreement of the couple.

In this particular Agreement, it is presumed that the Prospective Wife will enter into the marriage with substantial assets. These assets, any income derived there from, and any other income in the form of a salary remain the separate property of Prospective Wife during the course of the marriage and after termination of the marriage. The Prospective Wife is also deemed to be sole owner of the marital home, which she also retains as separate property during and after the marriage. This Agreement provides for Prospective Wife to be responsible for paying for all ordinary living expenses for the couple during the marriage and also defines what expenses are to be considered ordinary living expenses.

In addition to providing for the maintenance of separate property and allocation of expenses during the marriage, this Agreement also provides for the event of termination of the marriage. In the event of termination of the marriage by divorce, it provides that the Prospective Wife shall make specific, predetermined payments according to a predetermined duration to the Prospective Husband after the divorce. It also outlines the circumstances under which Prospective Wife will no longer be obligated to make these payments to Prospective Husband. These provisions contain dollar amounts which will be very specific to the parties’ precise financial situation. Careful consideration of assets and liabilities of both parties should be made before determining these amounts.

The Agreement also contemplates the termination of the marriage by death. The Prospective Husband and Prospective Wife remain free to devise or bequeath as much or as little property to each other. However, any property that is not specifically devised or bequeathed to the other party remains the separate property of the deceased and passes according to the terms of his or her Last Will without presumption that the other party to the marriage is entitled to claim it. This Agreement provides that the parties, to the extent allowable by law, waive their respective rights to claim a spousal share or homestead rights in the other party’s estate. Additional provision is made that the Prospective Wife will maintain a life insurance policy for the benefit of the Prospective Husband. Under this provision, the precise financial situation of the parties must be carefully considered to determine the amount of any such policy.