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Prenuptial Agreements

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Unfortunately, marriage does not always last forever. A person who has assets going into the marriage is putting them at risk by entering blindly and hoping for the best. Savings, property, automobiles, and even art collections can be split up as “community property” under the right circumstances during a divorce. Though it is a difficult concept to accept, protecting your current assets before entering into a marriage is prudent and wise, and can save a lot of heartache down the road.
Most states have community property laws that state if you have been married for a certain amount of time (no time limit in some states), half of your property, regardless of when it was acquired, belongs to your spouse. Athletes, entertainers, and heads of business that are wealthy before getting married are putting their property at risk by getting married without thinking about the possibility that things could end badly.
A prenuptial agreement can protect your “pre-marriage” property. A prenuptial agreement is a contract that is signed by the husband and wife prior to the marriage stating what will become of the assets of each party should the marriage fall apart. The property of each participant going in to the marriage is treated differently than property gained during the marriage, which is usually not protected and still subject to the “50% rule” found in most states.
Both parties must sign for the contract to be valid. This can lead to an uncomfortable conversation prior to the wedding. It should come as no surprise to a prospective spouse that a wealthy person will want to have a safety-net just in case a problem occurs, but some people see it as a lack of trust or a beginning belief that the marriage will not last, possibly creating a self-fulfilling prophecy. If the person who needs the contract gives in, his wealth is at risk in the case of divorce.
To make sure that the contract is all-encompassing, all assets must be listed and a payout should be offered to the other party in case of divorce. They will not get half, but they will get something. That tends to make it more palatable when signing. A private investigator can be hired to ensure that all of the person’s assets are accounted for and listed properly. Some people own quite a bit of diversified property, private investigators can often find the extent of the person’s wealth better than the person. The private investigator also acts as a third-party witness, helping the prospective spouse see that the agreement is in good faith.
Should the unthinkable occur and the couple breaks up, the prenuptial agreement will go into effect. The property acquired during the marriage will be split down the middle. Custody of the children and spousal support will be decided in court. The assets of both parties going into the marriage are protected as per the prenuptial agreement and cannot be taken if the agreement was signed. In a world where almost half of all marriages end in divorce, this tool is a wealth saver for many people.

