Prenuptial agreements play important role in asset protection, says Atlantic Trust

Even in a new marriage, wealth protection is a complex and valid concern for families

ATLANTA, Feb. 5, 2015 /PRNewswire/ - Prenuptial or marital agreements can be helpful planning tools for families facing the many "what if" scenarios that arise in a marriage, says Atlantic Trust, the U.S. private wealth management division of CIBC (NYSE: CM) (TSX: CM).

Far from being a disgraceful exit strategy, these agreements define each partner's rights and obligations in case of divorce or death. They are becoming increasingly common wealth protection tools at a time when many couples are entering into marriage later in life, have children and other financial responsibilities from a previous marriage or who otherwise have considerable assets that they want to safeguard.

Because the rules governing how a prenuptial or marital agreement is structured vary from state to state, it is important for both spouses to understand their marital rights and how entering into such an agreement would alter those rights. This is especially important when it comes to determining whether a particular type of property (such as a trust or family business) will be considered part of the marital estate upon divorce and thus subject to division.

"Each party should carefully consider what they are exchanging or giving up as part of the agreement," notes Paulina Mejia, Atlantic Trust managing director and wealth strategist. "In the case of post-nuptials, because the parties are already married, even more delicate negotiation may be required."

Additional requirements governing whether or not a particular agreement is valid or enforceable may need to be considered as well. Some states, whether by public policy or through case law, for example, have established "fair disclosure rules," requiring each spouse to fully and accurately disclose to the other his or her financial situation prior to executing a prenuptial agreement. Others have instituted a "second look" approach that requires the agreement to be reviewed at the time of its execution and again in the event of a divorce.

Before entering into a prenuptial or postnuptial agreement, it's important to consult with a financial advisor and family or estate planning attorney to determine the best course of action. Atlantic Trust offers several wealth management, asset protection and estate planning resources on its Online Resource Center as well. Visit http://www.atlantictrust.com or read "Loving Union, Legal Contract" for more information.

The tax information contained herein is general and for informational purposes only. Atlantic Trust does not provide legal or tax advice, and the information contained herein should only be used in consultation with your legal, accounting and tax advisers.

About Atlantic Trust

Atlantic Trust is one of the nation's leading private wealth management firms, offering integrated wealth management for high net worth individuals, families, foundations and endowments. The firm considers clients' financial, trust, estate planning and philanthropic needs in developing customized asset allocation and investment management strategies. Experienced professionals deliver a broad range of solutions, including proprietary investment offerings and a robust open architecture platform of traditional and alternative managers. Atlantic Trust operates in 12 full-service locations throughout the U.S. with $25.9 billion in assets under management (as of October 31, 2014). For more information, visit www.atlantictrust.com.

About CIBC

CIBC is a leading Canadian-based global financial institution. Through our Retail and Business Banking, Wealth Management and Wholesale Banking businesses, CIBC provides a full range of financial products to individual, small business, commercial, corporate and institutional clients in Canada and around the world. CIBC owns a 41 percent equity interest in American Century Investments®, a major U.S. asset management company, serving financial intermediaries, institutions and individuals, and acquired Atlantic Trust, a premier U.S. private wealth management firm, in January 2014. You can find other news releases and information about CIBC in our Media Centre on our corporate website at www.cibc.com.

SOURCE Atlantic Trust Private Wealth Management