Baby Boomer Prenups: How to Protect Assets From Relationship Breakdown

Prenups aren't just for millennials! Few people who go through the process of creating a prenuptial agreement to guide their romantic relationships do so with a break-up or divorce as the end goal. While it’s not always a comfortable consideration, the reality is that in the United States, roughly 50% of married couples divorce. If you do not protect your assets from relationship breakdown, getting a divorce or terminating a relationship can cause unintended adverse economic effects for both individuals, and particularly high net worth individuals. The rise of Baby Boomer marriages, blended families and de facto relationships in later life raise additional legal issues when it comes to asset protection. Baby Boomer prenups are a smart strategy to protect your assets from relationship breakdown. 

In this article, we answer common legal questions related to prenuptial agreements and offer some tips on how couples in Georgia can protect their assets from a relationship breakdown. 

What is a prenup, and can it protect my assets from divorce in Georgia?

If you are getting married and want to protect assets from a relationship breakdown, you should have a prenuptial agreement. Also called a premarital agreement or prenup, a prenup is entered into by two individuals who plan to get married. Every couple planning to marry can benefit from a prenup, but they are especially important for individuals who have accumulated considerable assets prior to marriage or have children and families to protect because prenups stipulate what happens to each spouse’s assets and income in the unfortunate event of divorce, separation or death.

Many Baby Boomers who enter into marriage have acquired significant assets, and may have been in previous marriages and have children from prior relationships. In Georgia, any asset acquired before marriage is considered separate property. However, all property acquired during the marriage is considered marital property and subject to equal division. This includes the marital home, care, gifts made by one spouse to another, retirement portions accrued during the marriage and other debts and assets.

Baby Boomer prenups can designate property, even if accrued during a marriage, as separate. However, this has to be stipulated and agreed upon by both spouses in their prenup. 

Can a Cohabitation Agreement protect assets from a relationship breakdown?

In Georgia, cohabitation is defined as, “dwelling together continuously and openly in a meretricious relationship with another person, regardless of the sex of the other person.” Practically, it may seem like marriage, however, cohabiting couples do not enjoy the same rights as married individuals. And, terminating a co-habitation does not require the same process as divorce in Georgia.

The most significant difference between Cohabitation and Prenuptial Agreements is they do not entitle either party to equitable property division once the relationship is terminated. In addition, Georgia family courts do not get involved in resolving property division and other aspects of cohabitation. Terminating cohabitation is usually mediated by a family law attorney.

Essentially, this means that Georgia courts do not legally recognize cohabitation agreements and will refuse to hear cohabitation disputes. Ending cohabitation can lead to disputes over personal assets and property.

Baby Boomer Cohabitation Agreements can cover property, possessions, debts, and even support and state issues, but these particulars have to be stipulated in the agreement. Establishing power of attorney and using other estate planning tools can also help protect assets from a relationship breakdown.

Summary 

Baby Boomers who want to protect their assets from a relationship breakdown need to take actions to legalize their domestic relationships, such as a prenup. The best way for Baby Boomers to protect their assets from relationship breakdowns in Georgia is to consult an experienced family law attorney who can draw up the correct type of prenuptial agreement to safeguard their future needs. 

Learn More: Baby Boomers and Prenups: FAQs

Contact a Gwinnett County Prenup Attorney Today

Couples enter into a prenuptial agreement to clearly communicate their relationship expectations, prevent (or simplify) a future divorce and protect their assets from a relationship breakdown. Baby Boomer prenups improve communications and offer freedom from stress and anxiety, particularly if it is a second marriage for you or your spouse, or if you own significant assets. coming into the marriage.

Attorney Sharon Jackson has years of experience and a deep understanding of Georgia family and divorce law and can offer the latest legal strategies to protect your interests with a prenuptial agreement or postnuptial agreement.

Contact us today at (678) 436-3636 to schedule a consultation.