Tip of the Law – Navigating the Complexities of Prenups and Law Firm Growth | Sarah Jacobs
Date: January 30, 2025
In this episode of Tip of the Law, Joe Giovannoli and Sarah Jacobs discuss the increasingly prevalent world of prenuptial agreements, exploring the shifting perceptions and driving factors behind this legal tool.
In a new episode of the Tip of the Law podcast, host Joe Giovannoli sat down with Sarah Jacobs, the co-founder of Jacobs Berger, LLC, a leading matrimonial law firm in New Jersey. Their discussion delved into the increasingly prevalent world of prenuptial agreements, exploring the shifting perceptions and driving factors behind this legal tool.
Jacobs began by sharing her firm’s journey, noting the growing prevalence of prenups in recent years. “Prenups were once seen as the domain of the ultra-wealthy, protecting family assets and merging fortunes,” she stated. “But today, we’re seeing a much broader demographic seeking these agreements.”
The reasons behind this trend are multifaceted. Jacobs explained that as people are getting married later in life, they are often bringing more personal assets to the table – whether in the form of entrepreneurial ventures, real estate investments, or simply more savings accumulated over the years. “More people are defining what that means for them as a couple moving forward,” she said.
But the conversation also touched on the emotional and relational aspects of prenups. Jacobs noted a shift in perspective, with some couples viewing these agreements as “romantic” in their own way. “I don’t want to have a blood bath if our relationship is not working out,” she recalled one client saying. “I want to pre-define what that means, so we can really focus on us and how we live our life together.”
Interestingly, the driving force behind prenups is not limited to the younger generation. Jacobs highlighted the role of generational wealth, with older family members often insisting that the younger generation protect their assets through these agreements. She explains that sometimes it’s the parents pushing for the agreements because the younger generation may not fully grasp what it is they’ve been given.
However, Jacobs cautioned that drafting effective prenups is no simple task. The legal complexities can be daunting, with considerations ranging from state laws and trust structures to the potential for future changes in lifestyle and income. “If your prenup is well drafted, it is less susceptible to attack,” she emphasized. “But if it’s not well drafted and there’s holes or there’s ambiguities or there’s inconsistencies, we’re lawyers – that’s what we do. We develop arguments and we fight for them.”
Beyond the legal intricacies, Jacobs and Giovannoli also delved into the broader challenges of running a law firm as a business. Echoing the experiences of many entrepreneurs, Jacobs highlighted the importance of data-driven decision-making and fostering a strong team culture. “You have to be comfortable with the uncomfortable,” she said. “You have to look at your bank account. You have to understand your expenses. You need to know where your business is actually coming from, and not just pray that people are gonna call.”
Ultimately, the conversation underscored the evolving landscape of prenuptial agreements, driven by both practical and emotional considerations. As Jacobs eloquently stated, “It’s romantic to say we’ve already worked that out, so we can really concentrate on our relationship and growing our family, and we don’t have to cross these bridges when we come to them, because we’ve already had the really tough conversation.”
Key takeaways
- Prenuptial agreements are becoming more commonplace, driven by both younger and older generations seeking to protect individual assets, not just family wealth. The reasons for this include destigmatization and people entering marriages with more personal assets.
- Drafting effective prenups requires careful consideration of complex factors like state laws, trust structures, business ownership, and potential future changes in lifestyle and income. Well-drafted prenups are less susceptible to later challenges.
- Law firms, like other businesses, face challenges in areas like data analysis, financial management, HR, and employee motivation that are not typically covered in legal education. Developing these business skills is crucial for law firm growth and success.
- Building a strong firm culture aligned with the firm’s mission and values, as well as fostering positive client relationships, can lead to happy employees and clients, creating a virtuous cycle for the business.
Episode Transcript
