While divorce is likely not on the minds of engaged or newly-married couples, high net worth individuals are smart to make a contingency plan in the unfortunate case that their marriage ends in divorce. Latest counts indicate that right around 40% of marriages end in divorce. So, while it isn’t the most romantic subject to think about, there are many benefits to putting a plan in place just in case – particularly if you have significant assets to protect.

Prenuptial (pre-marriage) and postnuptial (after marriage) agreements are legal tools that dictate what should happen if the married couple decides to divorce. At The Ohiku Law Office, we are the greater Milwaukee area’s leading high-net worth divorce attorney and are skilled at drafting both prenuptial and postnuptial agreements for our clients. Read on for everything you need to know about these tools.

Why should my spouse and I draft a prenuptial or postnuptial agreement? 

There are many compelling reasons to put a plan in place in case you and your spouse decide to divorce down the road. One of the biggest is this: Wisconsin is a marital property state. This means all property and debts held by either spouse during the duration of the marriage are subject to equal division during divorce (with some exceptions). So, if you have assets you treasure, considerable wealth, or are a business owner, divorce could mean you face significant losses. A prenuptial or postnuptial agreement will help you protect what’s important to you by outlining in advance how your assets would be divided should you and your spouse divorce.

What is a prenuptial agreement? 

A prenuptial agreement is a legally-binding document drafted prior to two people getting married. In the state of Wisconsin, this tool is sometimes referred to as a Marital Property Agreement. A prenuptial agreement dictates how property, assets, and debts the couple hold should be divided if they divorce. This may include: homes or other owned property, vehicles, retirement and investment holdings, inherited wealth, owned businesses, electronics, jewelry, antiques. A prenuptial agreement may even address the issue of alimony. A prenuptial agreement does not outline issues related to child support, custody, or visitation.

Importantly, if a prenuptial agreement doesn’t explicitly state that the terms outlined therein should apply to divorce proceedings, a judge may decide the document is invalid and divide the property in a different way. The judge must also find that the terms outlined in the agreement are reasonable, that both spouses were honest and forthright about their financial situations, and that both spouses had appropriate legal support when the agreement was drafted. An experienced divorce attorney should always help draft prenuptial agreements to ensure they hold up in court.

What is a postnuptial agreement? 

A postnuptial agreement is a legal document created after a couple has gotten married. Most often, a couple will create a postnuptial agreement if one receives an inheritance or they acquire new property. Inherited wealth is often an exception to marital property division as it is considered the property of only one spouse, but that is not always the case. A married person who wants to protect an inheritance should take the necessary precaution of drafting a pre- or postnuptial agreement.

As with a prenuptial agreement, a postnuptial agreement does not outline what should happen in regards to child custody and visitation should a couple decide to divorce.

I’m Attorney Odalo Ohiku. At The Ohiku Law Office, I help high net worth clients just like you with all aspects of family and divorce law, providing expert legal services that protect what’s important to you. If you’re engaged, newly married, or considering divorce and have significant assets to consider, it’s smart to consult an experienced Milwaukee divorce attorney. Our team is ready to answer your questions – give us a call today.