Prenuptial agreements allow marrying couples to largely create their own law as to what would happen in the event of a divorce. However, equally important is the ability to craft economic provisions that govern the distribution of assets in the event of the death of a spouse during marriage.

Demographics show that people are marrying later in life, at a time when they are more likely to have accumulated significant assets. The Pennsylvania Domestic Relations Code excludes such premarital property (but not its increase during the marriage) from the marital estate in the event of a divorce. However, absent an agreement to the contrary, such premarital property may be included in a deceased spouse’s estate in determining what the surviving spouse might receive under the intestacy laws or for purposes of the elective share. Prenuptial agreements can, therefore, be useful tools in defining a spouse’s inheritance rights and addressing the disposition of assets at the time of death. Prenuptial agreements are particularly helpful in marriages with blended families as they can be used to strike the delicate balance between providing for a surviving spouse and preserving assets for children from a prior marriage. Without a prenuptial agreement in place, a surviving spouse may receive more (or less) assets than intended. A typical agreement will address what assets the surviving spouse is entitled to receive and, in exchange, the parties will waive their inheritance rights under applicable state law.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]