Use Spousal Agreements For Asset Protection

, By Alexander A. Bove, Jr. & Melissa Langa

Consider a post-nuptial property division settlement for all your married clients. It has nothing to do with whether they'll ever divorce, and everything to do with blocking third-party creditors

By Alexander A. Bove, Jr. & Melissa Langa

It is well-settled law in all of our states that a husband and wife can contract with one another.¹ It's also well-settled that, in all states, future spouses can enter into a pre-marital contract, fixing their respective rights in separation, divorce or death.² Most states even allow spouses to enter into binding post-nuptial agreements establishing the spouses' respective rights to property, or calling for property division.³

But although there is little question that all of these agreements can be binding on the respective spouses, it's not at all settled whether such agreements, particularly post-nuptial agreements, are binding on third parties, that is to say the spouses' creditors.

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