Prenuptial agreements have had a poor reputation in the past. In contrast to earlier generations, millennials are more likely than others to get into prenuptial agreements. Prenuptial agreements can provide a wide range of advantages to engaged couples, and it’s best if both parties get the assistance of a family lawyer before signing. An equitable marriage is easier to achieve if you have a prenuptial agreement. In this article, you’ll learn what it is you need to know about this agreement.
What Is a Prenup?
A prenuptial agreement (prenup) usually outlines the assets and liabilities of both parties before the marriage, as well as the property rights each party will have after the union.
Depending on the circumstances, some states might refer to a prenuptial agreement as an “ante-nuptial agreement” or a “premarital agreement.” When referring to a prenuptial agreement, either party can use the word contract instead of agreement. In contrast, a “postnuptial,” “postmarital,” or “marital” agreement is made after the marriage rather than before the spouses consummate the union.
Why Do You Need a Prenup?
More and more courts and legislators are ready to respect prenuptial agreements due to the rising number of divorces, remarriages, and gender equality. Prenuptial agreements are now legal in all 50 states. Still, the court can disregard any unfairness or clauses they deem don’t satisfy other state criteria.
Prenuptial agreements aren’t only for the wealthy, as stereotypes will have you believe. While either spouse often uses prenups to safeguard their assets, less well-off couples resort to them in growing numbers for their own needs. Some individuals desire a prenuptial agreement for a variety of reasons.
There are prenuptial agreements available for couples who are getting married and have children from previous marriages. These agreements let the couple plan ahead for what will happen to their assets when either of them passes on. This agreement ensures their children can inherit their assets while still supporting each other. With no prenuptial agreement, a survivor’s share of the other couple’s assets can go to the survivor, leaving considerably less for the children.
If you’re getting a divorce, try to stay amicable. It’s also possible that your soon-to-be ex-spouse wants to prevent conflict in the event of a divorce. Either of you can do this by declaring how the courts will split your assets and whether or not each spouse is eligible for alimony payments in their will.
Furthermore, prenuptial agreements should cover a wide range of issues, including the following:
List of All Assets
This includes both separate and married and how you wish to identify future assets. Suppose you have a company and your spouse comes up with the idea that makes it more valuable. It’s possible to stipulate in your prenuptial agreement that your company will remain a separate asset even if your spouse contributed to its success. In most cases, this turns the company into marital property, necessitating its division (or the purchase of the other spouse’s interest) in the event of a divorce. Making a plan for identifying assets ahead of time can reduce the stress of marriage.
Protection from Bad Investments or Liabilities
Include a provision that shields both parties from the consequences of the other’s debts or poor investments if you want to be extra safe. If a divorce occurs, the court can divide debts between the parties as part of the property distribution.
Provisions for Children
Prenuptial agreements cannot contain provisions affecting the relationship between parents and children, like child custody, parenting time, and so on. However, you have some control over how the courts will treat your children regarding inheritance. Your heirs can wish to be protected if you had children from a previous marriage or adoption.
Estate Plan Protections
In your prenuptial agreement, it is possible to define your spouse’s position if you divorce, become disabled, or pass away. By doing this, you can safeguard your estate, your will, or trusts under your name.
The Way Partners Act in Marriage
Prenuptial agreements can specify the duties of each spouse in the marriage, which is something that isn’t well recognized. Even if one spouse wants to be a homemaker and the other concurs, a prenuptial agreement can help cement that decision. That way, they can’t say either exploited the other throughout the marriage.
These days, many more couples are signing prenuptial agreements. And to be on the safe side, you should discuss and draft your prenuptial agreement in a manner that is easy to comprehend and legally solid. Having independent attorneys examine and briefly advise you on your contract is highly recommended if you write your own. Otherwise, a court is far more likely to challenge its legality.