Is a Pre-Nup Right for Me? Second Marriages (Part 2 of 3)

Part II – Second Marriages

This is the second installation in a 3-part series about the most common reasons for a prenuptial agreement (“pre-nup”).

Last month, we discussed the most common scenario where a pre-nup may be advisable: where there is a vast disparity in wealth between the future spouses. We discussed the desire to protect inherited wealth from being diluted upon death or divorce.

This month, we explore a second common scenario where a prenup may be advisable—the second marriage.

Baggage from a Prior Marriage

When one or both future spouses have been previously married, by implication, one or both spouses’ prior marriages likely ended in divorce.

Unlike many couples who enter marriage having an idealized view of marriage, these couples enter marriage with a firsthand understanding that, statistically, marriage has a high likelihood of failure. Therefore, these couples are often more ready to plan for a possible divorce.

Moreover, one or both spouses may have already litigated the financial issues attendant to a prior divorce. Perhaps one or both spouses already have alimony and support obligations to a prior spouse. Anxious to avoid repeating history, and perhaps with wealth already depleted from a prior divorce, the spouses may be less able to afford a costly and protracted second divorce if it became necessary. A prenup is a way to shortcut the issues of controversy if this second marriage ends in divorce.

The Wisdom that Comes With Age

Parties entering a second or subsequent marriage are generally older and may be more established in their careers. Because of their own financial independence, these individuals may be more willing to waive the right to alimony in the event of a divorce. On the other hand, a spouse may be insistent that a financially independent spouse waive the right to support in the event of divorce.

Older clients also often carry a more pragmatic view of estate planning. Whereas earlier in life, when the most important element of estate planning may have been appointing a guardian for a minor child, now the most important element of estate planning may be protecting generational wealth to be inherited by adult children. These clients see value in the spouse’s waiver of statutory elective shares that would otherwise permit a surviving spouse to deplete inheritance that could otherwise pass to children.

If you are interested in exploring how a prenuptial agreement could protect you in a second or subsequent marriage or have been presented with a draft prenuptial agreement by your fiancé, we can discuss creative ways to negotiate fair terms. Please contact Bulman Dunie or attorney Meg Rosan at mrosan@bulmandunie.com.