Premarital Agreements

Premarital agreements are presented as the rational way to handle financial and property affairs that arise upon marriage. In Illinois, two people who are contemplating marriage can enter into a written agreement to regulate certain financial matters during the marriage in the event of a divorce and/or upon the death of one or both of the parties. Such an agreement may be referred to as a Premarital Agreement, Prenuptial Agreement, or Antenuptial Agreement. These agreements are governed by the Illinois Premarital Agreement Act.

In almost any circumstance, the parties may want to have a premarital agreement to memorialize their agreements; but in some situations it is almost imperative that the parties obtain legal advice regarding the possibility of a Premarital Agreement. A few such situations include:

Premarital Assets – If one or both of the parties has a significant amount of premarital assets, the parties should consider entering into a premarital agreement that specifies what will occur upon the death of at least the first of the two to die and in the event of a divorce.
Children from prior relationships - If either party has one or more children with someone other than the prospective spouse, the couple should consider a Premarital Agreement to clearly define and protect the rights in the event of divorce, of those children, the new spouse, and any children the parties may have after they get married.
Second and Third Marriages – Today divorce is a commonplace fact of life. As a result, there is a concurrent increase in second and third marriages. The conflicts that naturally inhere in such relationships make the litigation that follows uncertain, unpleasant, and costly. Premarital agreements allow couple to think through the financial aspects of their marriage before hand and provide such people with the opportunity to ensure predictability, plan their future, and, most importantly, decide their own destiny.

At Anderson & Associates, P.C. we have extensive experience in drafting and negotiation premarital agreements. We understand the delicate nature of premarital agreement negotiations and are adept at protecting our clients’ interests without disrupting the parties’ relationship.

Marital Assets

The division of marital assets and liabilities is an important aspect of dissolution of marriage. The term “equitable distribution” is the legal term for the process of dividing the marital property. Some of the factors that the Pennsylvania courts consider in equitable distribution include: the length of the marriage, whether either party had previously been married; whether either party has significant non-marital assets including assets excluded by a prenuptial agreement; the age, health, and income of the parties; whether either party contributed to the increased earning potential of the other; the standard of living of the parties during the marriage; the tax consequences of any award and whether either party will be serving as the custodian of any minor children.

Nonmarital Property

Nonmarital property escapes the equitable distribution process. Nonmarital property includes property that a spouse brought into the marriage, inheritances received by one party during the marriage, gifts to a spouse, property sold or disposed of in good faith during the marriage, and property excluded by a valid prenuptial agreement. However, the increase in value during the marriage of nonmarital property may be considered a marital asset if the increase in value was not excluded from consideration in a prenuptial agreement. Furthermore, if a spouse decides to use some nonmarital funds for a common purpose, those funds will be converted from nonmarital property to marital property.

Marital Property

Marital assets include property and income acquired during the marriage. A home, business owned by the parties, furniture, retirement accounts, other investments and cars purchased during the marriage are examples of marital assets. In these examples, the particular asset may be considered to be a marital asset even if it was acquired in only one spouse's name as long as it was acquired during the marriage and was not acquired through the use of the spouse's non-marital assets. Some assets may have both a marital and non-marital component. In that case, the non-marital value of the asset is excluded from the equitable distribution process. Marital debts are debts that were acquired by the parties after the date of marriage and before the date of final separation. Marital debts include such items as mortgages, loans, credit card balances, tax obligations and judgments. A debt may be a marital debt even if only one of the parties contracted for the debt as long as the debt was incurred during the marriage.

Alimony

Determining who receives orders for alimony and spousal maintenance are complex decisions that are not governed by state statutes. Anderson & Associates, P.C. has over twenty years of experience dealing with spousal support cases. Our attorneys frequently work with client to determine an appropriate support agreement. The order for spousal maintenance is dependent upon many issues including income and property of each party, needs of each party, present and future earning of each party, standard of living established during marriage, age, physical and emotional condition of both parties, tax consequences of the property division of the parties, any valid agreement between the parties, and any other factors that the courts find equitable and just. There are two main issues with regard to spousal support: the amount and the duration. The duration of spousal support is closely linked to the length of the marriage.

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Anderson & Associates, P.C. concentrates its practice in family law matters, including divorce and estate planning. We serve clients throughout the DuPage County suburbs, including Wheaton, Naperville, Glen Ellyn, Oak Brook, Bensenville, Lombard, Addison, Downers Grove Elmhurst, Lisle, Itasca and other Chicago area suburbs from our DuPage County Law Offices.