Considerations When Drafting A Prenuptial Agreement – Part 2
In Part 1 of our article “Considerations When Drafting A Prenuptial Agreement” we discussed considerations like income, purchasing property during marriage, how to address property purchased prior to marriage, and what to do about expenses after marriage. In Part 2, we offer the following considerations if you are contemplating hiring an attorney to draft a pre-nup, or if you are considering writing your own pre-nup:
If you are considering a pre-nup, you should consider how your taxes will be filed and what will happen with your tax returns. For example, will you file jointly or separately? Some people agree that even if they file joint tax returns, it will not affect each party’s separate property nor will it change the characterization of community property. In some situations, it may be best to agree on using one tax professional that can offer guidance and save money once you are married.
2. Retirement Benefits
Under Nevada law, once you marry, a certain portion of your retirement benefits may become community property if you continue to contribute during the marriage to your retirement plan. When considering a pre-nup, it is important to consider how retirement benefits will be treated after marriage. This might also include a discussion about whether your spouse is waiving a right to inherit your retirement benefits in the event you die during the marriage. A solid pre-nuptial agreement should include consideration for pre-marital benefits as well as post-marital benefits.
3. Medical Expenses
Commonly left out of pre-nuptial agreements is a provision for medical expenses. In Nevada, medical expenses incurred by either party during the marriage will be considered community debts. If your spouse has significant medical issues or is bringing a large medical debt to the marriage, you may want your pre-nuptial agreement to address how these expenses will be characterized. You may also consider making specific arrangements concerning minor children.
4. Attorney Fees
Many pre-nuptial agreements contain a provision for attorney fees in the event either party wishes to challenge the pre-nup in court. You should consider including a provision that makes the challenging party entirely responsible for both party’s attorney fees if the challenge isn’t successful.
We hope this article has been helpful and has shed some light on some of the things you can consider when drafting a prenuptial agreement. If you or someone you know needs a prenuptial agreement, call us today at (702) 433-2889.