When you get married in Nevada without a prenuptial agreement, you are expressly consenting to be bound by the laws of Nevada upon a divorce. Prenuptial agreements may not be considered “romantic,” but ugly divorces are even less romantic. It is generally easier to address potential problems or issues before marriage rather than during a divorce. If, however, for some reason you are unable or do not want to ask your prospective spouse to sign a prenuptial agreement, there are specific actions that you may take before marriage to mitigate some of your exposure to Nevada community property law.
Some of the same techniques that are used to protect one’s assets from a creditor may also be used to protect one’s separate property, even without a prenuptial agreement. The use of legal entities and trusts not only provide estate planning benefits, but may also provide some financial protection in a divorce where a prenuptial agreement was not used. Further, proper planning using separate bank accounts and avoiding commingling post marriage money with premarital money may also afford some protection. While these alternatives may afford some protection, they cannot completely replace the protections provided by a prenuptial agreement.
If you are already marriage, whether or not you are contemplating divorce, you may still simplify your community finances through a postnuptial agreement. Postnuptial agreements are similar to prenuptial agreements but they are entered into between spouses after marriage. The scope of what a postnuptial agreement may accomplish is more limited than a prenuptial agreement and the enforcement is more scrutinized by the courts than prenuptial agreements. Postnuptial agreements remain relatively untested in Nevada, but may be useful in specific circumstances.
While proper planning before a prospective marriage may provide some financial protection, proper planning before a potential divorce may also be useful. In many cases there is not sufficient time to financially plan for a divorce. In other cases, however, there may be time to obtain benefits from planning a divorce at least several months in advance.
The Las Vegas Family Law Attorneys are experienced family law lawyers and may provide assistance in planning for marriage or divorce. Call 702-843-5142 to schedule a consultation with one of our family law attorneys.