Why You Need a Prenup to Marry Even If You Think You’re Poor

October 6, 2014 – In The News
Main Street

Eric Solotoff was quoted in the Main Street article, “Why You Need a Prenup to Marry Even If You Think You’re Poor.” Full text can be found in the October 6, 2014, issue, but a synopsis is below.

Prenuptial agreements aren’t only for the rich and famous, even couples without assets when they walk down the aisle may need to protect themselves and their inherited assets.

Eric Solotoff explains that prenups can help determine whose debt is whose. “It’s not uncommon to see prenups drawn up when one half of a couple has significant student loan. Typically, premarital debt would be separate debt anyway, but sometimes things get blurred by refinancing and debt consolidation over the years.”

According to Solotoff, a prenup may also be beneficial in the case of trust funds. “You have to make it clear that the trust isn’t considered as marital property. With the right prenup, even if the trust was used to enhance the couple’s lifestyle, it can’t be taken into account for alimony.”

Prenups are also often used when a family business stands to be inherited, Solotoff says. “When there’s a family business that might not be in your name right now but may be in your name at some point, the family will often push a prenup to keep the business free from interference in the future.”

Professional licenses can be considered as a marital asset in some states and are often worth anywhere from $30,000 to more than $1 million. Solotoff notes that “if you obtain that license during the marriage, the value of it is an asset that could be divided.”