Posted by Nydia Streets of Streets Law in Florida Prenuptial Agreements

“Do I need a prenuptial agreement?” This is a question many have when considering marriage. It is a myth that prenuptial agreements are only for wealthy people or people who have a lot of assets to protect. A prenuptial agreement can be viewed as a way to save considerable money if there is a divorce - you can pay a fraction of what it will cost in attorney’s fees to have issues related to your marriage resolved now, rather than possibly paying a lot more later if these issues need to be decided at the time of divorce. The power of a prenuptial agreement is seen in the recent case Winrow v. Heider, 4D21-3122 (Fla. 4th DCA May 24, 2023).

The parties entered a premarital agreement which classified the former husband’s real property as his separate asset, and granted him the right to encumber it as he wished. During the marriage, the former husband obtained a home equity line of credit (HELOC) which he used to pay for the former wife’s medical procedure. At their divorce trial, the former husband argued this should be classified as a marital debt. The trial court agreed, citing equity, and entered a final judgment making both parties equally responsible for the HELOC. The former wife appealed, arguing this was error because it went against the terms of the parties’ agreement.

The appellate court agreed with the former wife and reversed the classification. It held “Although the Husband elected to spend the amount he borrowed on marital expenses, the loan itself was incurred solely by him as non-marital debt against his separate non-marital property pursuant to the terms of the prenuptial agreement. In other words, the Husband’s voluntary expenditure of the loan proceeds on marital expenses did not convert the loan itself into a marital debt.”

Contact a Miami family law attorney to discuss how a prenuptial agreement can help you.