What is Prenuptial Agreement
A prenuptial agreement also called a capitulation, is a contract that is entered into before marriage where a couple defines the way in which their assets, debts, income, and expenses will be divided, in the event that the marriage dissolves. Prenuptial agreements often have some common clauses to ensure peace of mind for both parties, such as:
- Property Separation: to protect your separate property.
- Financial separation: to protect yourself from the debt of the other spouse.
- Alimony: to determine the level of support that must be transferred to a spouse in the event of divorce and death.
- Division of responsibilities: to determine the responsibilities of each spouse after exchanging vows.
- Inheritance of a child: If one of the spouses was in a previous marriage, these terms will ensure that the children can keep a part of the estate instead of going directly to the other spouse.
- Forum selection: to determine which jurisdiction will govern any dispute that arises before the wedding. The selection of the forum can also determine how the dispute will be resolved.
Who Benefits from A Prenuptial Agreement?
Not all couples need a prenuptial agreement, but every couple can benefit from knowing their options, financial planning, and problem-solving. A prenuptial agreement can give the couple a sense of security.
Premarital agreements attorneys develop and review prenuptial contracts that serve a wide variety of purposes, including the following:
- The protection of minors, previous marriages, preventing assets without a prenuptial agreement from becoming part of the marital heritage.
- Helping couples who are shareholders with the necessary control to run their businesses in the event of the death of one of the spouses.
- Defining assets that accrued before the marriage, including business or home interest, separating it from the marital property in the marriage.
- Defining limits on the amount and duration of spousal support in the event of legal separation or divorce.
- Establishing ways to handle future disputes regarding money and practical matters during the marriage.
- Setting agreement terms for domestic partners.
What Problems Can Arise with A Prenuptial Agreement?
A bad prenuptial agreement will not provide the required protection.
Premarital agreements attorney has successfully had prenuptial agreements declared invalid by the court, repaired faulty prenuptial agreements, and protect clients from changing valid prenuptial agreements.
If you have concerns about your existing prenuptial contract. It is a good idea to have your contract reviewed by a premarital agreements attorney with the appropriate experience.
When Should You Make a Prenuptial Agreement?
Premarital agreements attorneys recommend that you make a prenuptial agreement as soon as possible before marriage.
Not only does it give you more time to set the terms, but also for it to be signed and seen by the court six months before the marriage as a solid contract and not one that was signed days before the marriage.
For these reasons, it is critically important that you establish a prenuptial agreement prior to your marriage and that you work with an experienced premarital agreements attorney.
Limitations of A Prenuptial Agreement
Although a prenuptial agreement can resolve any legal disputes that may arise before and after the wedding, the law of contract cannot be used for illegal purposes.
Prenuptial agreements cannot be used to evade the law. For example, a prenuptial agreement cannot be used to restrict or terminate child support or visitation rights for children.
Five major benefits of a prenuptial agreement are as follow:
The Prenuptial Agreement Forces Future Spouses to Communicate
One of the biggest benefits of a marriage contract is that it forces you and your future spouse to discuss a range of difficult topics. For example, you and your fiancé will have to determine who gets what in the event of a divorce.
This conversation can help make sure that both you and your spouse-to-be are completely open about not only your assets but also your debts. This allows you to get married without having any secrets about your finances.
The Prenuptial Agreement Protects the Important Property of the Spouses
Most people believe that prenuptial agreements only protect the party with significant assets, which is simply not true. Almost everyone who gets married has certain assets that they want to protect in the event of a divorce.
By determining who gets what in the event of a divorce. You and your future spouse can avoid additional headaches during the divorce process.
A Prenuptial Agreement Allows Spouses to Save Money and Time in The Event of a Divorce
Anyone who marries does so with the intention of being a happily married as possible for the rest of their lives. However, the sad reality is that 50% of US marriages end in divorce. This does not mean that your marriage will end this way; this means that you have to be prepared for what they are.
By concluding a marriage contract, you will save a lot of money, and most importantly, time.
The Prenuptial Agreement Sets Clear Expectations
Before signing the agreement, both you and your future spouse can clearly articulate your expectations, which will be of great benefit to both of you.
If, for example, your partner is in a significantly better financial position, you can specify in the marriage agreement that if your marriage lasts more than 10 years, you will receive a fixed amount of money in the event of a divorce.
Prenuptial agreements can be surprisingly flexible, which means you can tailor them to your specific needs. However, you should not enter into a prenuptial agreement without assistance.
Choice of Law Clauses
To determine what laws will govern any disputes that arise before the wedding. The forum selection clauses decide the location and manner of dispute resolution, while the choice of law clauses determine the rules that the couple must follow.
In order to ensure that prenuptial agreements do not undermine the marital duty to be fair and honest. States in accordance with their laws often require spouses to retain independent legal counsel.
The Prenuptial Agreement Spouses
For lawyers to be independent, they cannot present any conflict of interest. This rule will prevent a lawyer from representing both spouses since it would not be objective. As a result, independent legal counsel means that both spouses must have a premarital agreements attorney who can review the prenuptial agreement.
The Final Verdict…
Suppose you are thinking about the proposing or have been presented to agree to a prenuptial agreement.
In that case, the ideal thing is that it be discussed and treated calmly and respectfully, but without leaving aside any issue that may cause misgivings or problems in the future. If you have anguish about the matter, you should expose it to your partner.
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