Does a prenuptial agreement protect my assets in the US?
Yes, when valid. A prenup can designate premarital property, future gifts and inheritances, and specified assets as separate property not subject to division. To be enforceable under most states' versions of the Uniform Premarital Agreement Act, it must be in writing, voluntarily signed, with fair and reasonable disclosure of assets, and not unconscionable when executed.
What makes a prenup unenforceable?
Common grounds to invalidate a prenup: lack of full financial disclosure, signing under duress or without time to review, no opportunity to consult independent counsel, or terms so one-sided they are unconscionable. Provisions attempting to limit child support or predetermine child custody are generally unenforceable.
How does separate property become marital property?
Through commingling and transmutation. Depositing separate funds into a joint account, using an inheritance to buy a jointly titled home, or actively managing a separate business with marital effort can convert some or all of the value to marital property. Appreciation of separate property during marriage may also be divisible in some states.
Is appreciation of separate property divided in a divorce?
It depends on the state and the cause of the appreciation. Passive appreciation (market growth) often stays separate, while active appreciation resulting from a spouse's effort or marital funds may be treated as marital and subject to division. A well-drafted prenup can specify how appreciation is treated.