A gentler alternative to the pre-nup conversation.

By Tresp, Day & Associates · December 21, 2023

Marriage is built on optimism, which is exactly why the pre-nup conversation is so uncomfortable, it asks two people planning a life together to plan for its end. Yet protecting family wealth, a business, or premarital assets is prudent. The good news is that a prenuptial agreement is not the only way to do it.

What a prenuptial agreement does

A prenup is a contract that defines, in advance, how assets and debts will be treated if the marriage ends. It is direct and enforceable when properly drafted, but it requires disclosure, negotiation, and independent counsel, and the process itself can be emotionally fraught.

The asset-protection-trust alternative

Assets transferred into a well-structured irrevocable asset protection trust before marriage are removed from your individual ownership. Because you no longer own them outright, they are generally beyond the reach of a future divorce claim, and, as a bonus, beyond the reach of lawsuits and creditors too. For many couples this “divorce-proofing” achieves the goal without a spouse-versus-spouse negotiation.

Often better together

These tools are not mutually exclusive. High-level planning frequently pairs a targeted prenuptial agreement with an asset-protection structure for the strongest, cleanest result. The right approach depends on your assets, your family, and your comfort level, which is exactly what we help couples think through.