Small Law Firms

Saying ‘I Do!’: Prenuptial Agreements For Student Couples

Do you need a prenuptial agreement if there are few assets at the time of marriage? You better believe it.

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January, the dead cold of the winter, may not seem like the most desirable month to plan a wedding. Gray skies coupled with a likely chance of snow do not make for the best Pinterest-worthy photo backdrop. The first weeks of the new year, however, are popular times for college and graduate students to marry. On break from school, January, the time between semesters, is actually a perfect time for a couple where one or both parties are students, to make it official.

This is the point in my articles when I usually get on my trusts and estates soap box and  preach about the importance of executing a last will and testament or making an advanced directive, like a health care proxy or power of attorney. Instead, in this season of love and union (at least for the student-crowd), I am remaining life-focused, and shall discuss the importance of prenuptial agreements, specifically for the student-couple or those just setting out in life.

Prenuptial agreements are contracts entered into between parties prior to a marriage. It usually addresses the distribution and separation of assets in the event of divorce or death.

When students marry, especially those in law and medical schools, there may be a lot of debt from student loans and not a lot of assets. Future income streams may be unclear. Undergraduate debt may still abound. A commonly raised question is whether one needs a prenuptial agreement if there are few assets at the time of marriage.

As an attorney, I am charged by clients to look into the future to prepare them for the worst possible scenario and to minimize risk and harm to them and their families. No matter how bleak law school feels or how expensive medical school is, it would be dim to believe that one never will have a flourishing bank account. As such, it is important to contemplate how you would want your assets divided in the event of a marriage dissolution, based on what you have in the bank now, and the potential for what you will have later. Obviously if there is financing attached to your education, responsibility for loans should be considered in the event of a dissolution of marriage.

Admittedly, it is hard to know what will be in the future. Will you pass the bar? Will you get the residency you want? Will you go to business school? These concerns and unknowns, however, are the very basis for student brides and grooms to enter into such an agreement. A prenuptial agreement is not at the top of any engaged couple’s to-do list, yet I believe the mere discussion of the agreement, is an invaluable tool.

Often younger couples, who may not have yet started in the workplace, have little idea as to their assets and liabilities. Considering a prenuptial agreement starts a very important conversation. Finances are never easy to talk about. Within the context of executing a prenuptial agreement, the discussion may become easier, as there is a goal of building a life together at the end. Having the talk as to what you own and what you owe sets the stage for a partnership where expectations can be managed and life and career goals are better mapped. Additionally, it is a way to “adult” and actually find out from parents and other sources what you own, what assets are listed in your name, how much you owe, and when is it due to be repaid.

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I cannot help myself in noting the connection between prenuptial agreements and death. Besides the distribution of assets at the dissolution of a marriage, the prenuptial can address issues of distribution or control of estates upon the death of a spouse. For example, if younger when marrying, it is possible that the spouses wish to waive their rights to the other’s estate in favor of parents or other relatives. If there are concerns as to one’s impetus for marriage, a waiver of estate rights may be prudent, to protect children from a prior relationship or other family members. Of course, having a prenuptial agreement is not a replacement for a last will and testament. When writing the latter, an attorney should inquire as to the existence of prenuptial agreement and use it in her analysis of the estate plan.

For the student brides and grooms who choose the altar over the intercession beach vacation, it is prudent to at the very minimum, consider the preparation of a prenuptial agreement. As you learn in school and you will surely discover in the workplace, preparation, research and communication are always necessary for success.

Cori A. Robinson is a solo practitioner having founded Cori A. Robinson PLLC, a New York and New Jersey law firm, in 2017. For more than a decade Cori has focused her law practice on trusts and estates and elder law including estate and Medicaid planning, probate and administration, estate litigation, and guardianships. She can be reached at [email protected]. 

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