REESELAW BLOG

Recently, there has been a lot written about “grey divorce,” referring to couples who divorce later in life, and some unique issues that they need to consider. Similarly, for individuals entering marriage after age 50, or those marrying for the second or third time, a “grey” prenuptial agreement can be a valuable tool. These agreements address unique concerns about assets, children from previous relationships, retirement benefits, and estate planning. Understanding what a grey prenuptial entails can provide clarity and peace of mind for couples entering a new chapter in life.

What is a Grey Prenuptial Agreement?

A grey prenuptial agreement is signed by individuals entering marriage later in life, often following a prior marriage or relationship. As with any prenuptial agreement, grey prenuptials help couples spell out important issues before marriage that, if done properly, will control in the event of divorce and can impact estate issues at death. Grey or otherwise, a prenuptial agreement needs to meet certain requirements to be enforceable:

• It needs to be in writing.
• It needs to be signed and notarized.
• It must be entered into within a year prior to marriage. 

Under Virginia law, prenuptial agreements have specific limitations, so they cannot be used to avoid responsibilities like child support for the parents of the children at issue. There are also some beneficial terms to consider to make the most of the prenuptial agreement, including full disclosure of assets and liabilities. The agreements should also: 

Clarify Financial Expectations: A prenuptial helps couples outline how financial matters will be handled during the marriage, reducing potential conflicts.

Identify Individual Assets: Each spouse can protect their pre-marital assets, ensuring that property or investments acquired before marriage remain theirs.

Define Responsibilities for Debt: Prenuptials can outline each party’s responsibilities for various debts before or during the marriage, preventing an unintentional imbalance in financial liabilities.

Streamlines Divorce Proceedings: Should the marriage end, a prenuptial agreement can simplify the divorce process by establishing how assets will be divided, saving time, money, and emotional distress.

Specific Benefits of a Grey Prenuptial Agreement

When it comes to grey prenuptial agreements, the benefits are even more significant due to the life stage of the individuals involved. These agreements consider the financial complexities and responsibilities unique to older couples. Here are some specific advantages:

1.  Protecting Retirement Benefits
   Retirement savings such as 401(k) plans, pensions, and Social Security benefits become a major consideration for couples marrying later in life. A grey prenuptial can clearly define how these retirement benefits will be divided in the event of divorce or death, ensuring that each party retains the retirement savings they’ve built over their lifetime, if that is their choice. Additionally, the agreement can address whether one spouse will have access to the other's retirement benefits, such as pensions or survivor benefits, providing clarity on future income streams.
2. Safeguarding Children’s Inheritance
   Many individuals entering a second or third marriage later in life have children from previous relationships. A grey prenuptial can ensure that the inheritance rights of these children are protected. Without a prenuptial, assets may inadvertently go to a new spouse, leaving children from a prior marriage with less than intended. The prenuptial can outline which assets are to be preserved for children or grandchildren, providing peace of mind for spouses and their families.
3. Maintaining Clarity About Separate Property
   Couples who marry later in life often have established financial portfolios, including real estate, investments, and businesses. A grey prenuptial agreement can define what constitutes “separate property” (assets owned before the marriage) and “marital property” (assets acquired during the marriage). This distinction ensures that each party retains ownership of the assets they brought into the marriage while clearly defining how jointly acquired assets will be divided.
4. Estate Planning Integration
   A grey prenuptial can be integral to a couple’s estate planning. It ensures that both spouses’ wishes are reflected in their estate plans, particularly regarding asset distribution upon death. The prenuptial can prevent conflicts between family members and clarify how assets will be allocated, helping avoid legal disputes and potential litigation after one spouse’s passing.
5. Debt Protection
   Later in life, individuals may have various debts, including mortgages, loans, or business obligations. A grey prenuptial can outline who is responsible for pre-existing debts and how any debts acquired during the marriage will be handled. This can prevent one spouse from being held liable for the other’s financial obligations in the event of divorce or death.

A grey prenuptial agreement offers significant advantages for couples marrying later in life, providing clarity, protection, and peace of mind. If you are considering marriage later in life, the experienced attorneys at ReeseLaw, P.C., can help prepare a prenuptial that will work for your relationship. Contact us for a consultation to learn more.