Four Reasons You May Need to Change Your Prenuptial Agreement
Creating a prenuptial agreement is a smart move for any couple who is engaged and planning on getting married. In addition to opening lines of communication about financial matters and lifestyles, this important document also helps to protect both of you in the event of unexpected circumstances or a divorce. However, while it generally addresses issues pertaining to your assets and your marriage, there are some specific situations in which it may need to be changed.
Do You Need To Update Your Prenuptial Agreement?
Under Section 61.079 of the Florida Statutes, a prenuptial agreement is a legal contract that goes into effect the day you get married. It addresses your rights and responsibilities when it comes to property and assets, as well as some estate planning issues. As with any legal document, it is important to review it regularly and make changes as needed. Reasons why your prenuptial agreement may need to be updated include:
- There have been significant changes in income and assets.
When you created your prenuptial agreement, you disclosed all individual property and assets you possessed and was based on your income and what you projected your earnings to be in the future. If there have been any dramatic changes, such as coming into a large inheritance from a loved one, suffering job losses, or getting significant increases in pay, your prenup should reflect this new situation.
- You acquired or started a new business.
If you or your spouse started a new business, it should be added to your prenuptial agreement. Under Florida divorce laws, all marital property is subject to equitable division in a divorce. With a business, this could result in it being sold or dissolved. You may want to give thought to having your prenup specify that your business belongs to one person alone or specifying what share your spouse is entitled to.
- You need to adjust alimony to reflect tax changes.
In 2019, the Internal Revenue Service (IRS) will be implementing changes in the tax code which impact alimony payments. Previously, the paying spouse could claim alimony as a tax deduction while the receiving spouse was required to claim it as income. These tax ramifications likely played a role in any agreements made in your prenup. As the new tax law changes all this, you may need to alter your arrangements.
- There are marital issues that need to be addressed.
You may want to change the terms of your prenup if your spouse engaged in marital misconduct, such as having an affair or a gambling problem and you forgave them. Putting provisions regarding a recurrence of this type of behavior can help ensure you are protected.
Reach Out to Us Today for Help
At the law firm of attorney Vanessa L. Prieto, we provide the legal guidance you need to protect yourself and your rights in marriage. Contact our Fort Lauderdale prenuptial agreement attorney today and request a consultation to discuss how we can assist you.