So you’re getting married! It’s an exciting time, but before you say “yes I do,” it’s essential to think about what could happen if things don’t work out. A prenuptial agreement can help protect both you and your spouse in case of a divorce. Here’s everything you need to know about prenups.
What is a Prenup Agreement?
Prenuptial Agreement is an agreement between two people about to get married. The agreement will define the rights and duties of each person if they decide to separate or divorce later on. It also states how children of the previous marriage or children born during the marriage will be handled.
The agreement can be changed or terminated if both parties agree to it. But if one party wants to terminate the contract, they must provide a valid reason to the other party.
Why Do People Sign Prenup Agreements?
There are many reasons why people might want to sign a prenuptial agreement:
- To protect their assets for the benefit of their children or family members if they get divorced.
- Suppose one party has substantial wealth or holds a high position in society that could affect their ability to earn money after marriage. If everything is agreed upon and set out in the agreement before marriage, there will be no arguments or disputes about it later.
- If there is a divorce, the agreement will define how the assets will be split. It can also protect a spouse from taking advantage of another party during divorce proceedings.
- If a person has a well-known business or professional practice in public, they might want to sign a prenuptial agreement to protect their work and ensure that the company will continue operating.
- For people who have children from a previous marriage, a prenuptial agreement can ensure that the children will be taken care of financially even if the parents get divorced.
What Does a Prenup Agreement Comprise?
A prenuptial agreement is a legal contract signed by the couple before getting married. A prenup (or premarital) agreement ensures that future disputes about property, financial, and business interests are resolved based on their specific terms rather than default rules set out in state law. However, not all states allow couples to enter into prenuptial agreements.
There are three main elements that a prenup agreement typically covers:
- Business partnership interests: If the couple is already in business together or plans to start a business together, a prenup can clarify how the company will be managed and what will happen to it in the event of a divorce.
- Protection of separate property – This helps protect a person from the claims made by the other partner’s creditors in case of future bankruptcy, business failure, or divorce. In other words, this helps to prevent married couples from becoming obligated for their spouse’s debts.
- Child support and custody issues – Another essential element is dealing with child support and custody concerns. In case of a divorce, the prenuptial agreement can state how child support will be handled and what would happen to any property being bought or renovated for the children.
How Long Will a Prenup Take to Prepare?
Prenuptial agreements usually take little time to prepare, but many factors can cause it to take longer. As a rough estimate, you should expect your prenup to take at least three weeks to complete. There are specific guidelines a prenup should have:
- It should be in writing
- It should define that both parties understand their rights and obligations
- It should have a statement that the agreement is an integrated contract
- Each party should review the prenuptial agreement before signing it.
Not only can prenuptial agreements help save money on lawyers’ fees down the road, but they also provide peace of mind knowing that both parties are protected should anything go wrong. We have all the information you may need about these kinds of agreements and you may download this agreement template for any state in US here- https://forms.legal/prenuptial-agreement/