Illinois Prenuptial Agreements
If you're planning to get married and either you or your future spouse have substantial assets to protect, you may be considering a prenuptial agreement. A prenup is a legal contract established between two people before they marry. This contract outlines how assets, debts, and other financial matters will be handled during the marriage and in the event of divorce. In Illinois, prenups are legally enforceable if they are entered into voluntarily and with full financial disclosure from both parties.
What is the Purpose of a Prenuptial Agreement?
Prenups serve several purposes:
Protecting Assets: They are commonly used when one party has significantly more wealth or pre-existing debt than the other, or when either party has children from a previous relationship.
Clarifying Ownership: Prenups establish which assets are separate and which are jointly owned, preventing disputes during a divorce.
Providing Certainty: By outlining financial arrangements beforehand, prenups offer peace of mind and can help couples focus on their marriage.
Facilitating Business Ventures: A prenup can allow a spouse to use separate property for business investments that might otherwise be complicated by marital property laws.
What Can a Prenup Include?
A prenup clarifies the financial landscape of your marriage, specifically addressing what happens to assets in case of divorce. It can specify:
Responsibility for debts incurred during the marriage.
Division of assets acquired during the marriage.
Whether spousal support (alimony) will be provided
Financial rights and obligations during the marriage
Ownership of family businesses or jointly owned property
Custody and financial support considerations for children from previous relationships
A prenup typically excludes: Financial rights and obligations during the marriage
Ownership of family businesses or jointly owned property
Custody and financial support considerations for children from previous relationships
Property owned by either spouse before the marriage.
Each spouse's inheritance rights.
The right to designate beneficiaries (e.g., for life insurance or pensions).
While future income potential is generally not included, other property or money earned during the marriage can be addressed. Key Considerations Before Signing:
When creating a prenup, keep these key things in mind:
Balance: The agreement should be fair to both parties and not heavily favor one side.
Understanding: Both spouses must fully comprehend the terms and implications of the agreement.
Voluntariness: No party should feel pressured to sign. Sufficient time should be allowed for review and consideration.
Before signing a prenup, both parties should carefully consider:
The extent of each spouse's assets and debts.
Whether one spouse will agree to child support or alimony.
Custody arrangements for children from previous relationships.
It's crucial to address all potential questions and concerns before signing.
The Average Cost of a Prenuptial Agreement in Illinois
The cost of a prenuptial agreement in Illinois varies depending on its complexity and whether both parties have legal representation. A simple prenup might cost between $1,000 and $5,000, with an average around $3,000. While some couples may be deterred by the cost, having a prenup in place can often save significantly more in legal fees during a divorce, and the overall process is often easier, faster and friendlier.
Advantages of a Prenup:
A prenuptial agreement offers multiple advantages, including:
Protection of individual wealth during marriage
Prevention of disputes over asset division in case of divorce
Clarity on financial responsibilities for both spouses
Assurance regarding child custody and support arrangements
The ability for one spouse to use separate property for business investments
Defined terms for remarriage conditions
The primary benefit of a prenuptial agreement is the certainty and security it provides, allowing couples to focus on building their future together with peace of mind.
While some may view prenups negatively, they can be a valuable tool for couples seeking financial clarity and security as they embark on their married life. Consulting with an experienced Illinois family law attorney is highly recommended for anyone considering a prenuptial agreement. Contact Lake County family law attorney, Alan Lenczycki, for a complimentary consultation.
Learn more here: Dividing Assets in Illinois Divorces
