Tax Liability

Tax liability in the context of prenuptial agreements refers to the financial responsibility for taxes that each spouse may face regarding income, property, or assets during and after the marriage. A prenuptial agreement can outline how taxes will be handled if the couple separates, ensuring clarity on who will be responsible for any tax obligations related to joint or individual assets. This can help prevent disputes and provide a clear framework for financial management, impacting how assets are divided and taxes are calculated in case of divorce, thus promoting financial fairness and understanding.