Lance J. Nelson, Esquire
Shannon K. Brophy, Esquire

With the pending divorce between Sir Paul McCartney and Heather Mills remaining in the headlines, the words on everyone's lips have been "prenuptial agreement."

Why didn't the former Beatle, reportedly worth $1.5 billion, require one before his second marriage? While talk of prenuptial agreements being unromantic circulates through the media, there is also the fact that Great Britain does not recognize prenuptial agreements.

Here in America all fifty states recognize the contracts, including Pennsylvania. Most people assume, however, that if they don't have over a billion in the bank like Sir Paul, they have no need for a prenuptial agreement. While the benefits of prenuptial agreements to high net worth individuals are evident, many people of more modest means can benefit greatly from the agreements.

The Second Marriage
Individuals entering into their second marriage are a rising source of prenuptial agreements. While those who have once gone through the process of divorce have traditionally sought the protections of a prenuptial agreement (once bitten twice shy) those who have been widowed are increasingly seeking protection. A common scenario involves a widower with adult children, who intends to remarry. During his life he has put together a nest egg which he hopes will someday pass to his children. The law, however, will favor his new spouse in distributing his estate. A prenuptial agreement in conjunction with a Will can help ensure that the money in fact goes to his children.

The Business
Few things can gum up a divorce proceeding like a small business or closely held corporation. Whether the question is the actual value of the business or the income received from it, this one factor can touch both equitable distribution and child support. A prenuptial agreement can save future litigation by either waiving the new spouse's interest in the business, or establishing how the business or income there from will be calculated. In addition to protecting the newlyweds, this protection can extend to business associates who could otherwise find themselves involved in a colleague's divorce proceedings.

The Inheritance
Even if the parties do not have any assets when they get married, a prenuptial agreement can help protect money each inherits during the marriage. While the law provides some protection for inherited money, if the funds are put in joint names those protections are often lost. Inheritances are often used as down payments on homes or to pay down the mortgage. If the house is in joint names, the inheritance can then be considered in joint names. A prenuptial agreement, however, can protect inheritances, regardless of how the funds may be used during the marriage.

Conclusion
These are only a few reasons why someone might seek a prenuptial agreement. Sir Paul is paying the price now, but any couple contemplating marriage should consider speaking to an attorney about whether a prenuptial agreement might be appropriate for them.

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