Prenuptial Agreements
A prenuptial agreement, also known as a premarital agreement, is an agreement between prospective spouses prior to marriage. Prenuptial agreements are becoming increasingly popular, especially for second marriages. Prenuptial agreements can eliminate lengthy court battles over the payment of maintenance, and division of assets and liabilities. Both parties should have legal representation before signing a prenuptial agreement so they understand all of the pros and cons in the agreement.
Before entering into a prenuptial agreement, the parties need to disclose all of their assets and debts to each other. Decisions need to be made as to what is to be considered marital and non-marital property and who gets what in the event of divorce. Prenuptial agreements primarily deal with financial and property issues, not personal matters. For instance, it should not state that one party has to do all the cooking or cleaning. Prenuptial agreements also cannot adversely affect child support.
If you are contemplating marriage, discussing a prenuptial agreement may sound unromantic, but an honest discussion with your partner early on about money can give you both a better understanding of each other and put you both on the same page regarding finances. Discussion about financial matters early may actually prevent future disagreements about finances.
What is usually included in a prenuptial agreement?
Under certain circumstances, a prenuptial agreement can be ruled to be unenforceable. However, "unfair" depends on the agreement and the details of your case.
A prenuptial agreement may be deemed unenforceable if a party did not sign the agreement voluntarily or if it was unconscionable when it was signed. For instance, a prenup that was signed without full discloure of both parties' assets and liabilities could be deemed unenforceable. Also, forcing someone to sign a prenupial agreement too close to the wedding date could be seen as a sign of duress and then deemed unenforceable.
Before entering into a prenuptial agreement, the parties need to disclose all of their assets and debts to each other. Decisions need to be made as to what is to be considered marital and non-marital property and who gets what in the event of divorce. Prenuptial agreements primarily deal with financial and property issues, not personal matters. For instance, it should not state that one party has to do all the cooking or cleaning. Prenuptial agreements also cannot adversely affect child support.
If you are contemplating marriage, discussing a prenuptial agreement may sound unromantic, but an honest discussion with your partner early on about money can give you both a better understanding of each other and put you both on the same page regarding finances. Discussion about financial matters early may actually prevent future disagreements about finances.
What is usually included in a prenuptial agreement?
- Each person's non-marital and marital property rights and obligations;
- How property will be divided upon separation, divorce or death;
- If maintenance will be paid or not;
- How wills, trusts or other estate planning documents will carry out the terms of the prenuptial agreement;
- Ownership rights of life insurance benefits;
- Which state law will govern the agreement.
Under certain circumstances, a prenuptial agreement can be ruled to be unenforceable. However, "unfair" depends on the agreement and the details of your case.
A prenuptial agreement may be deemed unenforceable if a party did not sign the agreement voluntarily or if it was unconscionable when it was signed. For instance, a prenup that was signed without full discloure of both parties' assets and liabilities could be deemed unenforceable. Also, forcing someone to sign a prenupial agreement too close to the wedding date could be seen as a sign of duress and then deemed unenforceable.