Whether your adult child is in a serious relationship or not, it’s never too early to bring up the subject of prenuptial agreements – especially if you plan to leave them considerable assets when you pass away.
People who marry when they’re in their 20s or even later often think there’s no need for a prenup since they’re bringing few assets into their marriage. They may have no idea what kind of family assets they could be risking – from money passed down through generations to family property to a share of a business and more.
As such, you may need to let your child know what kind of assets could be at stake in the event that they eventually divorce. You may find it easier to have that conversation with your child before they’re ready to marry. That way, it won’t seem like you don’t trust their partner or that you don’t expect their marriage to last. It’s easier to present a prenup as just a smart thing for anyone to have in place when they marry.
How an inheritance can end up being marital property
Individual inheritances typically aren’t considered marital property to be divided in divorce – even in a community property state like Arizona. However, once an inheritance is commingled with marital assets, a spouse can seek a share of the commingled assets in divorce, unless a prenuptial (or postnuptial) agreement states otherwise.
Commingling is easy to do without even realizing that it is happening. Depositing inherited funds into a joint account or inherited assets to upgrade the marital home are just two examples of this phenomenon.
Remember that if child decides to get a prenup, their spouse-to-be must agree to it as well, without pressure from anyone. Coercing someone to enter into a prenup can invalidate the document if it is later challenged. A prenup also has to be fair to both parties.
Divorce-proofing assets via estate planning
If your child marries without a prenup, there’s no need to disinherit them to protect family assets from a divorce. With thoughtful planning, your child can still protect inherited funds in the event of divorce. In addition, you might consider creating a trust that allows your child to benefit from your assets while protecting those assets from the child’s divorce and other creditors.
If you have questions or concerns about protecting your family’s assets from divorce, it’s smart to get experienced legal guidance. Making this effort can help you review all your options and make informed choices accordingly.
