Prenuptials

Many believe that prenuptial agreements popularly referred to as “prenups” are solely used by the wealthy to protect their assets. However, these agreements or contracts are increasingly being used by those with more modest incomes.

What is a Prenuptial Agreement?

A prenuptial agreement also known as a premarital agreement is an agreement or a contract made in contemplation of marriage which defines the rights and obligations of the each person in the event the marriage ends by either divorce or death.

Outline Financial Rights

When we get married most if not all of our assets will become marital property. However, with the use of a premarital agreement you can protect your right to premarital property. The agreement can be used to outline the couples’ financial rights and typically addresses how property will be divided in the event of a divorce.

For those who have children from previous relationships a prenup can be used to ensure that those children are not excluded from an inheritance. You can specify in the agreement that you want certain assets to pass to your children without interference from your spouse.

How to proceed?

When a couple is considering marriage the thought of a prenuptial agreement is often contrary to the romantic feelings the couple is enjoying. However, in order to have a prenuptial agreement the couple needs to discuss the agreement in great detail. There are a number of issues that can be covered in the agreement. Prior to the signing of the prenup each person will have to write down all of their assets and debts and share that information with the other. The signing of the agreement must be voluntary and it is best if the agreement is not signed close to the wedding date. Each person should seek the advice of their own attorney who can draft, negotiate and review that agreement and ensure that the terms of the agreement are understood.