Is there an alternative solution to a prenuptial agreement?
A prenuptial agreement is not something that is easily brought up with your soon-to-be spouse. In fact, many Nevada residents are shy to bring up the need or desire for a prenuptial agreement because they’re afraid it will make them seem distrustful or selfish. In fact, this is not the way future spouses should view prenuptial agreements, but instances where a prenup is impossible, future spouses may want to consider setting up an Asset Protection Trust.
An Asset Protection Trust does not require the other spouse to agree to it. As such, it can be created confidentially without any involvement of the other spouse. For this reason, the Asset Protection Trust could be a great alternative to a prenuptial agreement, especially for those who have specific assets they want to protect from the possibility of being divided in the event of a future divorce.
Asset Protection Trusts offer a layer of protection to spouses from lawsuits, asset division proceedings and other kinds of claims. In the best of cases, these trusts should be created in addition to a prenuptial agreement. However, the Asset Protection trust should be finalized and funded prior to the creation of the prenuptial agreement. Also, in many cases, spouses choose only to create an Asset Protection Trust in situations where a prenuptial agreement is not possible. At this time, only 16 states — which include Nevada — permit Asset Protection Trusts.
Nevada residents who are considering the use of an Asset Protection Trust may want to speak with both a qualified divorce attorney and a trust planning attorney. These professionals can help Nevada residents determine if an Asset Protection Trust is right for them.
Source: Kiplinger, “A Tale of Two Celebrity Marriages and One Prenuptial Agreement,” John M. Goralka, Sep. 01, 2016