Colorado Prenuptial Agreement Benefits and Requirements
Most individuals enter marriage with hope for a lifetime union. But the sad part is that is not always the case, as some end up in separation or divorce. Among the conflicts that arise during divorce are property division and financial management. But things get easier with a prenuptial agreement that aims to give couples financial security even after their marriage ends. Discover more about a prenuptial agreement in Colorado.
What is Colorado Prenuptial Agreement, and Why Do You Need It?
A prenuptial agreement predetermines how couples want their properties and finances to be managed after a divorce or death. The deal outlines where each asset goes, whether the couple wishes to retain their joint accounts, how they will settle debts and if any of them will pay spousal support to the other.
There are limitless reasons to consider signing a prenuptial agreement in Colorado. For starters, it encourages honesty as couples get to open up about their financial situations before getting married. It also ensures fair property division and makes the divorce process more bearable. The prenuptial agreement reduces the chances of conflicts resulting in lengthy court battles.
If you have children from a previous relationship, signing a prenup ensures the protection of the kids' inheritance and interests. Simply put, a prenup helps you to protect the assets and accounts that you owned before you got married.
What Does a Colorado Prenup Cover?
A prenuptial agreement covers anything to do with the couple's property and finances. Some of these aspects are:
- How do you wish to divide each party's premarital assets in the event of divorce or death?
- How you want to divide marital property if the marriage ends
- If you wish to retain your employee benefits and retirement plans and whether you will share with your spouse
- How you intend to repay the mortgage, credit cards and other loans after a divorce
- If any of you will pay spousal support to the other, the amount and duration
- Whether each of you needs to make a will before signing the agreement
- How you will regulate the purchase and sales of marital properties
- If each party will benefit from the other’s life insurance in the event of death
In Colorado, a prenup does not discuss child custody and support. Judges will decide during divorce proceedings based on what's best for the kids at that time.
Colorado Prenuptial Agreement Laws
Each state has varying laws to govern contract signing, and Colorado is not an exception. Colorado is among the states that have adopted the Uniform Prenuptial Agreement Act to govern the enforceability of the prenup.
Under UPAA, prenups should be in writing and signed by both spouses. The prenup only becomes effective after the couple gets married. Other requirements for an enforceable prenuptial agreement include:
- Both parties should sign the contract voluntarily
- They should be in their right state of mind
- The couples understand the terms and conditions of property division and agree to them
- Both spouses must disclose adequate information about their financial situation and loans
- The spouses had access to legal experts for guidance through the laws and requirements
The court will deny the enforceability of a prenup if it violates any of the requirements. Spouses may attach their financial statements to certify that the information they offered was correct.
If one party uses any physical or psychological threat to make the other party sign the agreement, they are subject to fines. Note that refusing to marry someone because they refused to sign a prenup does not count as a violation.
Download a free Colorado prenuptial agreement form and embark on your journey to financial protection.