In New Jersey, a prenuptial agreement lets you define the terms upon which you will be divorced. It protects premarital and non-marital assets, determines how marital assets will be divided, defines responsibility for repayment of debt, and sets clear expectations for alimony or waivers of alimony.

If you want to safeguard family businesses, secure inheritances, and reduce the stress of potential future divorce proceedings with a prenuptial agreement, our team is here to help. The family law attorneys at Moskowitz Law Group explain what can be included in a prenuptial agreement, and what cannot.

Separate vs. Marital Assets

Under New Jersey law, couples can use a prenuptial agreement to define which assets are marital and subject to being divided in equitable distribution, and how, and which assets are separate and exempt from being divided. It may also protect family businesses by prohibiting a forced sale or dividing ownership shares, while determining how the increase in value of separate property during the marriage will be handled. Without a prenuptial agreement, the Court will apply the laws governing equitable distribution to determine which assets are exempt from being divided and which are subject to being divided, and how.

Debt Allocation

Specifying who is responsible for premarital and marital debts may also be included in a prenuptial agreement in New Jersey. The parties are legally permitted to include credit cards, student loans, car loans, and mortgages as debts to be divided, and how, or not divided at all.

This legally binding contract allows you to dictate how all existing and future debts are treated in the event of a divorce. Without a prenuptial agreement, New Jersey Courts divide these liabilities according to the laws governing equitable distribution, which can leave you partly responsible for debt in your future spouse’s name.

Spousal Support

A prenuptial agreement can also specify terms for spousal support post-divorce. Modifying, waiving, or capping the amount and duration of alimony payments is typically the goal here. This can be hugely beneficial, because determining alimony obligations is a complex process and can be highly contentious.

What Cannot Be Included in a Prenuptial Agreement?

New Jersey does not allow a prenuptial agreement to determine child custody, child support obligations, or other obligations toward the financial support of children. If these kinds of issues are addressed in a prenuptial agreement, the Court will strike these provisions down and declare them unenforceable. This is because these matters are determined according to the child’s best interests and needs at the time of the divorce, which cannot be predicted in advance. Beyond child-related issues, terms that dictate issues like personal behavior, frequency of intimacy, and outcomes based on who is at fault for the divorce are also unenforceable and will be stricken down by the Court.

Reach Out to Discuss What to Include in Your Prenuptial Agreement

A legally sound prenuptial agreement provides certainty and protects assets in the event of a divorce, but that is not all. It also encourages vital early communication about money, fostering transparency and trust right ever before the day you exchange your vows.

If you are considering entering into a prenuptial agreement with your spouse-to-be, consult with an experienced family law lawyer at Moskowitz Law Group. Reach out to our skilled attorneys today to discuss what should be included in your prenuptial agreement to ensure it complies with State requirements.