Will a Prenuptial Agreement Impact Inheritance Rights in NJ?

Whether your partner just agreed to your proposal or you and your future spouse have been discussing the idea for a while, understanding how a prenuptial agreement works is critical. Many assume that only the ultra-wealthy can benefit from these agreements, which is far from the truth. In reality, these contracts can help protect not only both spouses but also the inheritance rights of beneficiaries. As such, the following blog explores what you should know about these matters, including how a prenuptial agreement works and whether or not it will supersede inheritance rights. In addition, you’ll discover the importance of contacting New Jersey prenuptial agreement lawyers to help you navigate these complex matters.

What Is a Prenuptial Agreement?

A prenuptial agreement is a document a couple creates and signs prior to the marriage that details how they will handle their property in the event they divorce in the future. Generally, this is used to determine what is separate vs. marital property, and the way in which property will be split among the spouses. This is often beneficial, as it can help make the divorce much easier while ensuring that both parties have a sense of financial security for the future.

Prenups can also address matters related to alimony, but cannot include terms regarding child custody. Custody matters must be decided at the time of the divorce, whether by the couple reaching a mutual agreement or the court ultimately making the decision.

Can a Spouse Waive Their Claim to an Inheritance in a Prenuptial Agreement?

It’s important to understand that in New Jersey, a spouse will inherit the entirety of their surviving spouse’s estate upon their passing in the event that they do not have a will in place. However, if the deceased is survived by their spouse and children from a prior marriage, their spouse will receive the first 25% of the estate and half of the remaining balance while the children inherit the rest. As such, many couples want to ensure that their prenuptial agreement addresses this matter to leave their estate to their children or other relatives.

New Jersey also has what’s known as an “elective share.” Essentially, this means that a spouse who is left out of the will still has a right to claim one-third of the estate following the death of their spouse.

As such, your spouse will have the option to sign a waiver of inheritance rights prior ot the marriage, which releases their claim to your estate upon your passing. This is commonly used in second marriages where one spouse has children from their previous marriage or in relationships where one spouse owns a business and wants to ensure the company is transferred to the designated heirs instead. Without this waiver, a spouse cannot be completely disinherited from the estate.

Creating a prenuptial agreement to protect your estate and beneficiaries can be difficult, which is why it’s in your best interest to connect with an experienced attorney with Haber Silver Russoniello & Dunn to explore your legal options. Our dedicated team understands how complicated these matters can be, which is why we will do everything in our power to help you achieve peace of mind for the future. Contact us today to learn how we can represent you.