Effect On Property Division In Divorce With A Prenuptial Agreement

Effect On Property Division In Divorce With A Prenuptial Agreement

Once a marriage ends, one of the things that should be talked about is how the liabilities and assets will be divided. In Wisconsin, the marital property state will usually be divided into two. Yes, it doesn’t matter if most of the property is under your spouse, everything will be divided into two, which means that both parties will get 50% each of all the properties.

But if there is a prenuptial agreement, things will be different. The reason behind this is because the prenuptial agreement will immediately tell whether the property will go to the other spouse or not. It will already include the intentions and understandings of both of their assets.

Prenuptial Agreements Can Overcome 50/50 Split

Prenuptial agreements have the power to distribute the couple’s property unequally. Usually, this is common in a subsequent to a second marriage. Both of the spouses clearly want to protect their assets and as well as their children. In some instances, a couple will sign an agreement, where there is a significant difference, or when one of them will bring a huge amount of debt during the marriage.

If the couple agreed on a prenuptial agreement and one that is valid, it would be the one to dictate as to how the liabilities and the assets will be divided upon divorce.

Generally, the prenuptial agreement can also provide that all the liabilities and assets will be treated as their own separate obligations or assets during the marriage. Also, the agreement will specify how these joint assets will be equally divided once both of them file for a divorce. Everything from debts accumulated during the marriage will also be stated on the agreement and on how it will be treated during the divorce.

Unenforceable Prenuptial Agreements

Just like with any other contracts, a prenuptial agreement can also be challenged by the other person. Usually, the one who will challenge it is the spouse who will be foreclosed from getting the certain maintaining amount of assets due to the agreements. This will make the divorce ugly and can even be challenged in a family court.

In Wisconsin, the prenuptial agreements may not become enforceable, especially if both parties failed to disclose their financial information with each other right before getting married. If one of the spouses did not disclose the income, liabilities, and assets, this could implicate the prenuptial agreements that were signed.

Also, if one of the two parties doesn’t have the power to hire a specific attorney to help with proposing and reviewing changes in the agreement, then the prenuptial agreement can be vulnerable to certain challenges. Similarly, if the agreements were signed due to pressure or compulsion from the other person, it may not be invalidated by the family court.

Now, when the prenuptial agreement does not intend to divide the liabilities or assets, the law in Wisconsin says it will be equally divided among both parties. This will be at the time when the agreement had been signed, and during the time of divorce. But when an unforeseeable event happens to one of the parties, dividing the assets based on the prenuptial agreement will no longer become equitable.

Conclusion

These are the information on how property division will be affected upon divorce using the prenuptial agreement. These things will affect the division, but it will always depend on the state where you are located. The reason behind this is because each state has different laws when it comes to divorce and prenuptial agreement, so talk about it with your family lawyer.

Based on Materials from SBE Law
Photo Sources: Money Crashers, Hansen Law Group, Money Under 30