Can a Prenuptial Agreement Protect Future Earnings?

First of all, we would like to congratulate you and your fiancé on your future marriage. This is a beautiful time in which you will officially join your lives together. But with this, you must understand that the state views marriage as an economic partnership. So while you may understandably be preoccupied with wedding planning, we encourage you and your fiancé to carve out time to have a difficult yet important conversation about a prenuptial agreement. Even though you do not anticipate or wish your marriage to end one day, you may still want to give yourself this financial protection. After all, you cannot predict the major career growth and earnings ahead of you. Follow along to find out whether a prenuptial agreement can protect your future earnings and how a proficient Long Island prenuptial & postnuptial agreement lawyer at the Law Offices of Jay D. Raxenberg P.C. can help you.

Can a prenuptial agreement protect future earnings and income earned during marriage?

As the name suggests, you may assume that a prenuptial agreement will only protect the assets you already own before your marriage. However, if you are a high-net-worth individual, a business owner, or otherwise a professional with highly projected career growth, you may be interested in this protection continuing. Well, if so, you may be happy to hear that within this legally-binding agreement, you may state that future earnings and income earned during the marriage remain as separate property.

Here, you must write this instruction as clearly as possible for it to become legally enforceable. This means explicitly listing the types of earnings that should be categorized as separate, such as salary and future salary increases; bonuses, commissions, and overtime pay; and equity compensation through stocks or business shares. Of note, even if this is properly disclosed, your fiancé must voluntarily enter this written agreement. Plus, it must be witnessed by a notary public.

Can a prenuptial agreement protect future earnings from alimony or child support?

Of course, higher future earnings can increase marital wealth, which can influence the financial outcome of your divorce. This is why you may want to classify it as separate wealth in your prenuptial agreement in the first place, and include provisions where you limit, waive, or heavily control an alimony arrangement. However, the New York family court has the right to challenge this as extremely unfair. They may look at your ability to pay and your soon-to-be former spouse’s needs for support before making a final ruling.

Even more so, your prenuptial agreement generally cannot protect your future earnings and marital income from being considered for child support. This is because the court will prioritize your child’s best interests and override your provisions with the state’s guidelines on child support amounts and obligations. Further, the court will work to ensure that your child remains as unaffected by your divorce as possible and decide on a support order that allows them to maintain the lifestyle they have grown accustomed to.

Please prioritize scheduling an initial consultation with a talented Long Island family lawyer from the Law Offices of Jay D. Raxenberg P.C. We would be honored to represent you in your legal case.