Premarital agreements, also known as prenuptial agreements or “prenups,” are gaining prevalence and importance as today’s couples make decisions to remarry or marry later in life. A premarital agreement is a written contract signed by spouses-to-be that governs how their assets will be divided in the event that the marriage is terminated by death, divorce, separation or annulment.  When written correctly, premarital agreements can protect business and personal assets, compensation and future inheritance. They can provide peace of mind by spelling out how the financial aspects of the marriage will be handled, and they help avoid costly battles over assets upon divorce.

Most states, including West Virginia, are considered “equitable jurisdiction” states. This essentially means that everything earned or bought by a couple after their marriage, as well as any increases in the value of property bought by one spouse prior to the marriage, is considered marital property. In the event of a divorce, the courts presume that all marital properties and assets such as these are to be divided equally. However, a valid premarital agreement permits the parties, rather than the courts, to determine how their marital property shall be divided.

In addition to providing for the division of marital property, premarital agreements can address other issues, including but not limited to:

The validity of a premarital agreement is dependent upon it having been signed voluntarily and with each party possessing full knowledge of its content and legal effect. It is important to note that premarital agreements can be set aside by the courts if there was fraud, duress or misrepresentation when the agreement was signed or if the parties failed to fully disclose their assets and liabilities. As such, it is important that both parties seek an attorney’s advice and counsel before signing a premarital agreement.