Why a Florida Prenup Should Be at the Top of Your Estate Planning To Do List

Were you aware that a Florida prenup can be a useful tool in estate planning? While most people assume that prenuptial agreements are only used to protect assets in the event of divorce, this is far from the only reason why many engaged couples choose to create one. 

Couples can use a Florida prenup to designate which assets should be considered separate property, and which are community or shared property. Making this distinction before marriage can prevent separate assets from being wrongly classified as community property when a spouse dies. This may be particularly useful for second or subsequent marriages, or for those who are marrying later in life or who have accumulated significant assets prior to the marriage. In some states, marriage entitles each spouse to a share of your estate (between a third to a half, depending on where you live). If you intend to leave less than that amount to your spouse, he or she has the power to request a higher percentage, which can leave your intended beneficiaries with less. 

Another reason why many couples choose to have a prenuptial agreement is to avoid disputes about money or property during the marriage. For a prenuptial agreement to be valid and legally binding, both parties must fully disclose their assets, properties, and debts in the agreement. Due to their financial picture being clear, there are fewer disagreements about how to manage their assets. 

Another common instance where a Florida prenup may be useful may be in the case of a closely-held family business. Often, business owners require only family members to be owners of the business and its holdings. If during a divorce, the business is determined to be partially owned by both spouses, the non-familial spouse could end up being an owner. In order to alleviate that situation, restrictions could be placed in the business’s agreements, or by transferring ownership of the business to a trust. A prenuptial agreement that describes the business as separate property and sets forth the rights and restrictions on ownership, however, would be another layer of protection for the business. 

Do you have questions on a Florida prenup and using it in your estate planning? Please contact our law practice to learn more. We are here for you. Elder and Estate Planning Attorneys PA is a law office small enough to provide personal service but large enough to provide service in Palm Beach, Martin, St. Lucie and Indian River Counties.