When couples in Schaumburg or Cook County decide to get married, finances might not be the most romantic topic—but it's one of the most critical conversations. A prenuptial agreement (prenup) is a legal tool that clarifies both parties' financial rights and responsibilities before marriage.
While often associated with high-net-worth individuals, prenups can benefit anyone looking for financial clarity and protection. If you're considering a prenup, understanding the basics of Illinois family law and how the courts evaluate these agreements can help you make informed decisions.
What Is a Prenuptial Agreement, and Who Should Consider One?
A prenuptial agreement is a legally binding contract signed before marriage that typically outlines:
- How current and future assets will be managed
- How debts will be handled
- What happens in the event of a divorce
While business owners and high-asset individuals are typical candidates, anyone seeking financial clarity in marriage can benefit from a prenup.
Who Can Benefit from a Prenup?
- Business Owners — A prenup protects the business's future value if you own a company (especially a startup with growth potential).
- Inherited Property Owners — If you have inherited assets or expect future inheritances, a prenup ensures they remain separate property.
- Those with Substantial Debt — A prenup can clarify who is responsible for pre-marriage debts, so one spouse doesn't become liable for the other's financial history.
- Complex Financial Portfolios — Those with stocks, retirement accounts, or multiple properties can define asset ownership and avoid financial disputes.
What a Prenup Can and Cannot Cover
Prenuptial agreements can address many financial matters but have legal limitations.
Can Cover:
- Ownership of business interests, real estate, investments, and other assets
- Protection from debts
- Spousal maintenance (alimony) agreements
- Guidelines for managing marital and separate assets
Cannot Cover:
- Child custody or child support — Courts prioritize the child's best interest, meaning a prenup cannot determine future custody or financial support.
Assets Acquired Before vs. After Marriage
One common misconception is that prenuptial agreements only cover assets owned before marriage. A prenup can specify which future assets will be considered separate or marital property.
For example:
- If you own real estate before marriage, a prenup can ensure any future appreciation remains yours alone.
- If you and your spouse buy a home after marriage, the prenup can determine whether it will be divided equitably in a divorce.
Protecting Business Assets in a Prenup
A prenup is critical for business owners to protect a company's growth, revenue, and ownership structure. Without a prenup, a divorce could entitle a spouse to a share of the business, even if they weren't involved in its operation.
A prenup can specify:
- Whether business assets are separate property
- How profits and growth will be handled
- What happens to business shares in the event of divorce
How Prenups Address Future Assets
Many couples wonder, How do we handle assets we'll acquire later? Prenups can predefine ownership rules for:
- Expanding investment portfolios
- Real estate purchases
- Intellectual property rights
- Business growth and acquisitions
Clearly outlining whether future investments are considered marital or separate property prevents ambiguity and potential disputes if the marriage ends.
Can a Prenup Protect Income Earned During the Marriage?
Yes and no. Illinois law generally considers income earned during the marriage as marital property. However, a prenuptial agreement can override this presumption by specifying that certain earnings remain separate property. This provision is beneficial for:
- High earners who want to maintain control over individual income
- Commission-based professionals who expect fluctuating income
- Entrepreneurs with anticipated business growth
How Courts Determine Prenup Validity in Illinois
Illinois courts consider several factors when evaluating prenup enforceability:
- Voluntariness — Each spouse must sign the agreement willingly without coercion.
- Full Financial Disclosure — Both parties must disclose income, assets, and debts. Failure to do so can void the contract.
- Fairness — If the prenup is deemed unfair or extremely one-sided, a court may invalidate it.
- Proper Formalities — The agreement must be in writing and signed by both parties before marriage.
Illinois Uniform Premarital Agreement Act (UPAA)
Illinois follows the Illinois Uniform Premarital Agreement Act (UPAA), which outlines requirements for prenups. If a prenup meets these standards, it will likely be upheld in court.
If you're in Schaumburg or Cook County, working with an experienced family law attorney ensures that your prenup meets all legal requirements and aligns with your financial goals.
Postnuptial Agreements: An Alternative to Prenups
Unlike a prenuptial agreement, a postnuptial agreement is signed after marriage. Some couples choose postnups when:
- They didn't sign a prenup but now want financial protection.
- Financial circumstances have changed (e.g., a spouse inherits significant wealth).
- While postnuptial agreements are enforceable, courts scrutinize them more closely, making legal guidance essential.
When Should You Update a Prenup?
Life changes, and so should your prenup. You may need to revise or update your agreement if:
- You have children and need to adjust financial provisions.
- You inherit significant assets.
- You sell or expand a business.
- Your financial circumstances shift drastically.
Prenups can be modified anytime, provided both spouses agree to the changes in writing.
Talk to a Prenup Attorney in Schaumburg, Cook County
A well-drafted prenuptial agreement brings peace of mind and financial clarity. If you're considering a prenup or want to understand your rights under Illinois family law, consulting an experienced attorney is the best first step.
At the Law Offices of Robert M. Kaplan, P.C., we work with couples to create customized agreements that protect both parties' interests. Whether you need a prenuptial or postnuptial agreement, we ensure your legal and financial concerns are appropriately addressed.