Plano Prenuptial Agreement Lawyer: Simple Truths About Pre-Marital Agreements

 Posted on January 24, 2023 in Asset Protection & Wealth Preservation

The prenuptial agreement is frequently known as a "prenup" because provides two individuals to enter into marriage a predictable agreement. A prenup is a legal contract, which includes provisions concerning property division, spousal maintenance, and other financial agreements in case of a divorce. The prenup is intended to protect asset protection in case of a divorce or separation, which will minimize the financial pain and drama typically caused by divorces.

In Illinois, prenuptial agreements are often considered for middle-aged to older couples or otherwise known as "gray divorce" couples. Prenuptial agreements provide clarity and define each person's roles and responsibilities in case of a divorce. The prenuptial agreement outlines each person's assets, liabilities, and division in case of a divorce. The prenuptial agreement also should define what is non-marital and marital property and define how retirement security, real estate, real estate investments, and other financial assets will be divided in case of a divorce.

Often, grey divorces will have adult children or minor children, which are close to the age of eighteen. The prenup is used to protect one's real estate or business holdings acquired before the marriage such as a closely held business or investment real estate. The prenuptial agreement provides an orderly process and transitions in case of marriage dissolution. Marital dissolutions cause emotional trauma and result in significant financial distress. Dissolutions of marriage often involve divorce attorneys litigating against one another driving up the legal fees and costs inflicted on the parties.

What is Marital Property and Why Does Marital Property Matter in a Pre-Nup?

In Illinois, marital property is defined as property that was acquired during the marriage, which makes it subject to the divorce process. Marital property includes homestead real estate and investment real estate acquired during the divorce along with vehicles, retirement and pension accounts, and bank accounts. Marital property also involves investments such as money market accounts, bank accounts, and other financial instruments. 

Marital property is used in divorce cases to define assets that are acquired and appreciated during a marriage. In contrast, non-marital property is defined as property obtained before the marriage and the property obtained is not subject to the marriage in case of a dissolution. Non-marital property in character will result in the individual that brought the non-marital property to the marriage. For example, a prenup may state that non-marital assets and the appreciation of non-marital assets may not be shared by the other spouse in case of a divorce. The non-marital property will remain the property of the individual that acquired the property interests. The prenuptial agreement may also state that marital property and non-marital property will be equally divided or contain a ratio that marital and non-marital property will be split in case of a divorce. 

Plano Pre-Nup Lawyer: Pre-Nuptial Agreements Must be Fair and Conscionable

Prenuptial agreements must be fair and balanced to be enforceable. The terms of the agreement may not be one-sided or unconscious. Simply put, this means that the agreement will be scrutinized for fairness because divorce courts only approve equitable and fair divorce settlements. For example, a prenuptial agreement that waives spousal support for a stay-at-home mother after 11 years of marriage may be invalid. The Illinois divorce courts in Plano, Illinois require the parties to provide fair and reasonable financial settlements considering.

Factors to Consider in a Plano Illinois Pre-Nup Agreement

In Illinois, spousal maintenance guidelines are governed by 750 ILCS 5/504. Illinois maintenance guidelines apply for couples with a gross income of $250,000 or less. Marriages involving greater than $250,000 may deviate from the traditional spousal support or otherwise known as "alimony" guidelines. The court may grant a maintenance award for either spouse in amounts and for the period as the court deems just and fair. 750 ILCS 5/504. The spousal guidelines do not consider marital misconduct and maintenance may be ordered out of income or property division in a divorce case. The divorce court will consider all financial circumstances to determine the spousal support award and time. There is a statutory framework, which is a spousal support formula that gives predictability and certainty for couples divorcing.

Spousal maintenance is a court-awarded financial payment that aids the other spouse maintain the level of lifestyle acquired during the marriage. Before January 1, 2019, maintenance was tax-deductible for the spouse paying spousal support. Now, spousal alimony is non-taxable to the party receiving the spousal maintenance award, which is like the payment of child support in Illinois.

Plano Pre-Marital Agreement Attorney: Providing Peace of Mind and Financial Security for Middle-Aged and Grey Couples

At Peace of Mind Asset Protection, LLC, we specialize in estate planning, pre-marital agreements, and asset protection law. Unlike divorce attorneys, here we have practice divorce law but desired to focus on estate planning and asset protection. Divorce and estate planning combined are critical to assist middle-aged to grey couples understand the implications and financial consequences of entering into pre-marital agreements and post-marital agreements. Our law firm has significant expertise in the issue of marriage, dissolution of marriage, and pre-nuptial agreements. Call us today at 630-882-2467 or reach out through the online contact form.

Unlike divorce attorneys, our law firm has significant divorce, estate planning, and asset protection legal experience. Divorce attorneys understand the divorce process and how to properly protect assets from a divorce. However, their weakness is their lack of understanding of sophisticated estate planning strategies such as the use of living trusts, LLCs, and other estate planning and liability planning tools.

Peace of Mind Asset Protection, LLC specializes in estate planning, prenuptial, and post-nuptial agreements. We are Kendall County Prenuptial Agreement Attorneys serving the Kendall County areas including the following: Yorkville, Oswego, Joliet, Plainfield, Newark, Bristol, Boulder Hill, Aurora, Sugar Grove, and Montgomery. Call us at 630-882-2467 or contact us through the online contact form.