All You Need to Know About a Prenuptial Agreement
The wedding season is right around the corner and with a hundred things to celebrate, there are a few unanswered questions the couple might have-signing a prenup agreement is often one of them.
Marriages are made in heaven, but not all of them last a lifetime. What starts as a promise of a dreamy future together may end up sooner than expected. Though unromantic, a prenuptial agreement reduces the legal hassle in case of divorce or the death of either of you.
Putting a premarital agreement might seem uneasy before marriage, but in case of an unfortunate incident, it leaves you with more time to deal with your emotions.
What Is a Prenuptial agreement?
Couples with large assets enter a prenuptial agreement meaning to determine how the assets will be divided in case they separate by death or divorce. The documentation includes details of the distribution of assets and liabilities among the couple in case the marriage falls apart. It may also address issues relating to custody of children.
Who Needs a Prenup Agreement?
Any couple can opt for signing a prenuptial agreement but it is more advisable in the following cases:
· Couples with high-value assets or those expecting to receive a significant inheritance- you can determine if your spouse gets a share of your assets.
· In the case of second, third, or any subsequent marriages- you can decide what part of your marital property from earlier marriages can be shared with your new partner.
· Those with children from previous marriages- you can leave a part of your property for their consumption.
What Is Included In Prenuptial Agreements?
Ideally, a premarital agreement should be tailored to suit the couple's case. The following clauses can be included in a prenuptial agreement:
1. Separate property- The dealing of property owned by individuals before or during the marriage
2. Shared property- The distribution of property bought together or jointly in the names of the couple
3. Alimony- The amount to be paid as alimony in case of earning or non-earning spouses. The capability of the spouse to earn in the future must also be considered.
4. Earning during the marriage- The treatment of joint and individual earnings during marriage
5. Custody of children- The terms of legal and physical custody of offspring can be decided by mutually agreeing to sole or joint custody.
Prerequisites of Prenup Agreements
The prerequisites of a prenup agreement are:
1. Timing of prenup agreement definition and signing is crucial to its validity. It should be signed and presented well in advance of the wedding date.
2. Disclosure of accurate, complete, and recent financial details is mandatory. The financial statements should cover all information on assets and liabilities.
3. Signing of the premarital agreement should be done independently and voluntarily by both parties.
4. Enforcement of a prenuptial agreement is subject to the fairness of provisions for both parties. The disproportionate distribution of assets or unfair claims of alimony may lead to the rejection of agreement upon presentation at the court.
Signing a prenup agreement is a personal decision. Though it may not sound the best thing to do right before getting married, it surely helps keep post martial legal hassles at bay.
Freelance Content Writer and Copywriter creating brand stories.