Prenuptial Agreements: What are they?
Prenuptial Agreement: What are they?
A prenuptial agreement can save you a lot of money and time should your marriage end. Often called a prenup, this document lays out how your assets and debts will be distributed should your marriage end.
Couples getting ready to marry rarely want to consider the end of their marriage. But it’s a fact that about half of all marriages end in divorce, even though divorce rates have fallen in recent years. Preparation for worst-case scenarios is key to anything in life. Marriage is no different.
__________________________________________________________________
A prenup establishes property and financial rights of each spouse should the marriage end in divorce. Prenups are like estate planning. You make a will to leave items to your children or heirs, ensuring each person gets a meaningful item. A prenup lets you determine who gets what if you divorce.
A prenup contemplates the end of your marriage so you can divide assets with an objective mindset. It can even help protect your business.
Prenups allow you to determine whether spousal support (alimony) will be due if the marriage ends and the amount and terms of those payments. And they can determine what kind of bequests you leave to each other in your wills.
Prenuptial agreements go by other names:
- Antenuptial agreement
- Premarital agreement
- Prenuptial contract
No matter what it’s called, a prenup works to clarify the rights each party has should the marriage end. This may sound unpleasant now, but it can save a lot of heartache and money down the road.
Should I Get a Prenup?
If you’re asking yourself: “Do I need a prenup?” You probably do. It may be worth any early discomfort to have a prenup’s potential value down the road. Prenups are increasingly viewed as a way to foster trust and open communication about finances between partners.
Prenups can be particularly useful to couples trying to keep separate significant pieces of personal property, including future inheritances and other anticipated income. This motivation is common among couples with a big age or wealth difference and among older or remarrying couples.
If a couple enters a marriage with few of these issues to address, prenups can be especially important because their circumstances may change dramatically. In fact, couples who still have most of their lifetime assets and debts ahead of them are some of the best candidates for a prenup.
How to Get a Prenup
You can have attorneys negotiate and draft a prenup, or you and your spouse can create your own.
How to Draft Your Own Prenup
Drafting your own prenup, or any legal document, is not recommended. There are complex state laws you’ll need to follow with regard to the drafting and signing of a prenup. If you want to create your own prenup, there are several items to consider.
Keep in mind that you’ll still need a lawyer to review any prenup you create. You need a legal advocate to protect your rights and ensure the contract is valid in your state.
Contact Esquire Risa L. Hall for more information.
Author: Bryan Driscoll, J.D.
Legal Expert Writer and HR Consultant
