For New York couples preparing for marriage, a discussion about finances is a necessary step, regardless of how unromantic it may seem. A prenuptial agreement (prenup) is a legal instrument that can be used to clarify how assets, debts, and property will be divided in the unfortunate event of a divorce or death. Although prenups are frequently associated with high-net-worth individuals, any couple can benefit from the financial protection. Many couples turn to prenups to protect business interests and future earnings. If you are considering one, it is in your best interest to contact an experienced Nassau County Prenuptial Agreement Lawyer. Our legal team is prepared to help you align your financial future with your expectations.
What Can a Prenuptial Agreement Do Under New York Law?
In New York, a prenup can define which property remains non-marital (separate) and which becomes marital (divisible). This enables spouses to safeguard future income, such as earnings, business interests, or investment accounts, by pre-defining them as separate property, even if they were acquired during the marital relationship.
A prenup should address non-paycheck future income as well (e.g., bonuses, commissions, stock options, RSUs, and business appreciation). If you earn incentive-based compensation, the agreement should stipulate whether these forms of income and the value they generate are considered marital or non-marital. Additionally, while earnings themselves can be more difficult to isolate, a prenup can govern how income is used and the legal ramifications.
Can a Prenup in New York Protect My Future Salary or Income?
A properly drafted and executed prenup can safeguard future earnings by pre-defining them as non-marital property instead of joint marital property. This protection prevents these funds from equitable distribution. It also allows for designating assets accrued during the marriage, such as retirement accounts and pensions, as non-marital rather than joint property. This ensures future assets are not split.
Furthermore, without a prenup, the state typically considers most income earned during the marriage to be marital property. With a prenup, you can avoid these default classifications and safeguard your future salary or income. If your career is on a growth trajectory or whose fiancial situation is likely to change significantly during the marriage, you should consider creating a prenup for structure and peace of mind.
It should be noted that to be valid and upheld by New York courts, theprenup must be in writing, entered into voluntarily, and accompanied by full financial disclosure of assets, income, and debts. Engaging a knowledgeable attorney can support the validity of the contract.
To protect your financial future and ensure your prenup is not considered unconscionable, please don’t hesitate to contact a lawyer at the Law Offices of Eyal Talassazan, P.C.
