We often hear in the news about the next celebrity couple who is divorcing.
For celebrity couples and others on the higher-end of the earning scale,
they will want to protect their assets and their earning power. What about
the average Joe or Jane?
Prenuptial agreements can still help to divide those assets prior to marriage, in the event
that a couple
divorces or one or the other passes on prematurely.
What is “equitable distribution of assets?”
Without a prenuptial agreement, once the marriage has dissolved, the assets
of the marriage will be subjected to the laws of the state. When the case
is brought before a judge, he or she will look at the following elements
of the divorce to determine how best to
divide property. This is called an equitable distribution of assets.
- The economic status of each spouse
- Any increase or decrease in value of the couple’s property
- If any spouse’s property depleted during the marriage
- The property’s value and what is owed to each spouse
- How much should be awarded to the spouse who will have majority custody
Colorado recognizes that there is separate property, as well as marital
property, which includes any assets accumulated during the course of the
marriage. There is, also, however, separate property. Let’s say
that you were given a gift before you were married—a large inheritance
or perhaps another home that belonged solely to you. This is considered
separate property, and would remain in your possession.
Should I have a prenuptial agreement?
Deciding on a prenuptial agreement is an immensely personal decision, and
you will have to weigh the pros and cons. Do they apply to your current
situation? While not the most romantic of ideas to talk about with your
spouse in the days before marriage, so be sure that you are ready to discuss
those ideas. If you are not ready to dive in, or if the timing does not
seem right, you can also take wait until after you are married to decide in a
We also suggest you take the time to review the laws. You may find that
they will work well for your situation, and that can certainly save you
the extra step of creating a prenuptial agreement. Whichever you do decide,
we strongly advise you consult with a Colorado family law attorney to
help you make the right decision for you and your future.
We are happy to speak with you. Call us today to
schedule an appointment.