Enforcing Prenuptial Agreements Across State Lines: Analyzing the Challenges and Considerations When a Prenuptial Agreement Is Subject to Multiple Jurisdictions

On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Thursday February 27th, 2025.

Prenuptial agreements can help couples protect their assets and define financial responsibilities before marriage. However, if a couple moves to another state or files for divorce outside their original jurisdiction, it can be difficult to enforce the agreement. Each state has different laws, and a prenuptial agreement that is valid in one place may not hold up in another.

Why Prenuptial Agreements May Not Be Enforced in Every State

State laws (not federal law) govern prenup agreements. This means each state has its own rules about what makes an agreement valid. Some states strictly enforce prenups, while others review them more closely to ensure fairness​.

One major issue is that some states follow community property laws. These laws automatically divide assets equally between spouses when they separate. If a prenup conflicts with those laws, a court may refuse to enforce certain terms​. Courts may also reject a prenup if they find it unfair, one-sided, or lacking full financial disclosure at the time of signing​.

How Can You Strengthen a Prenuptial Agreement Across State Lines?

If a couple moves or owns property in different states, they should take steps to protect the agreement. Some of the things they can do include:

  • Choice-of-Law Clause: A prenup should specify which state’s laws will apply in case of a dispute. Without this, the state where the divorce is filed may apply its own laws, which could weaken the agreement​.
  • Full Financial Disclosure: Courts are more likely to enforce a prenup agreement when both spouses had complete knowledge of each other’s finances before signing​.
  • Independent Legal Representation: If both spouses had their own attorneys when signing the prenup, courts are less likely to question its fairness​.
  • Review and Update the Agreement: If moving to another state, consult an attorney to check if the prenup complies with local laws​.

We Can Help Protect Your Agreement Before It’s Challenged

A prenuptial agreement is only useful if it holds up in court. You can take extra steps before marriage to prevent future legal battles. If you need to create or update a prenup, Wickersham & Bowers can help ensure it is enforceable no matter where life takes you. Contact us today for a consultation.

Incorporating Charitable Trusts Into Estate Plans: How They Benefit Both Estate Taxes and Philanthropy

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Thursday February 27th, 2025.

Many Florida residents want to leave something meaningful for their families and for the causes they believe in. One way they can do that is through charitable trusts. A charitable trust allows you to donate to charity while securing tax benefits and managing wealth in the process. By supporting education, healthcare, or any other cause, a charitable trust ensures your generosity continues long after you’re gone.

What Is a Charitable Trust?

A charitable trust is a legal way to set aside money or assets for charity. In the process, you can keep the financial benefits for yourself or your heirs. There are two main types of charitable trusts:

  • Charitable Remainder Trust (CRT): You or your chosen beneficiaries receive an income from the trust for a set period. After that, whatever remains goes to the charity of your choice​.
  • Charitable Lead Trust (CLT): The charity gets income from the trust first. Then, after a certain period, the remaining assets are passed to your heirs​.

How Can a Charitable Trust Help With Taxes?

Charitable trusts can help reduce taxes in several ways:

  • Income Tax Deduction: You can get a tax deduction when you set up the trust. The deduction is based on the amount that will eventually go to charity​.
  • Avoiding Capital Gains Tax: If you donate appreciated assets, like stocks or real estate, you won’t have to pay capital gains tax when they’re sold​.
  • Lower Estate and Gift Taxes: Assets in a charitable trust may not be counted in your taxable estate. This can reduce or even eliminate estate taxes​.
  • Protection from Creditors: Since the assets are held by the trust, they are generally shielded from lawsuits and financial claims​.

Besides tax advantages, you can use charitable trusts to support charities for years to come. Many nonprofits rely on steady donations to plan their programs and help more people​. Instead of a one-time gift, a charitable trust can provide long-term financial support for these organizations.

Make a Plan That Reflects Your Values

A charitable trust can be a great way to give back while also protecting your estate. If you want to explore your options, Wickersham & Bowers is here to help. Contact us today to get started on an estate plan that fits your goals.