What Is a Prenuptial Agreement?
A prenuptial agreement, also known as a pre-marital or antenuptial agreement, is a contract that determines what property and financial rights you will share with your future spouse in the event of divorce. A prenup can be written before or after marriage, and is typically enforceable if both parties agree to it.
Prenuptial agreements allow each party to protect their assets. They also let each spouse decide how they will divide their debts and assets if they get divorced.
Creating a prenup can be challenging, but it can be worth the effort and time involved in doing so.
If a person has significant assets, such as a business or family property, a prenup may be the best way to ensure that their interests are protected in case of a divorce. Using a lawyer for this process can be important, because there are many details that must be covered in an agreement, says attorney Elizabeth Green Lindsey, president of the American Academy of Matrimonial Lawyers.
When Is a Prenuptial Agreement Right for Me?
A prenup can be a good choice for anyone, regardless of their income level. It can also be a good idea for people with children from a previous relationship, because it can ensure that any money that would otherwise go to them will remain in the family after the couple separates or dies.
The benefits of a prenuptial agreement are many, including the ability to make decisions about your finances in advance and to keep any private information private. In addition, a prenup can help you save money and time in the event of a divorce by deciding on issues such as child custody, alimony, and division of property in advance.
What Do I Need to Prepare a Prenuptial Agreement?
The first step in drafting a prenup is to provide each party with full disclosure of their financial situation. This is usually done through a detailed list of all their assets and liabilities, but it can be accomplished with other information such as recent loan applications, tax returns, and bank statements.
Once the prenuptial agreement is created, it should be reviewed by a legal advocate who can make sure that it is fair and valid in your state. Some courts have scrutinized prenups with a suspicious eye in the past, but the law is becoming more friendly toward these documents.
What Do I Need to Consider Before Getting Married?
A prenuptial agreement should be drafted by a lawyer who is familiar with your state’s laws. The more knowledgeable the lawyer, the better the chance that the prenuptial will be upheld in court should a divorce happen.
In some cases, a prenuptial agreement can be created by the parties themselves without the aid of a lawyer. However, this method of drafting is not a recommended approach because it can be difficult to ensure that all the terms are clear and that the agreement will be enforceable in court.
