What is a Prenuptial Agreement?
What is a Prenuptial Agreement?
A prenuptial agreement, often referred to as a “prenup”, is a binding contract between two people contemplating marriage, to be effective upon marriage. The subject matter of a prenup can vary widely, but many couples use prenups to govern the the financial aspects of their marriage and/or how the couple’s assets and debts will be divided up in the event their marriage dissolves.
Why Get a Prenup?
There are two thing all couples entering into a prenup share - the desire to have predictability and control over an aspect of their marriage, or the dissolution thereof.
Predictability
Without a prenup, the terms of a couple’s marriage and divorce will have to follow what the state law provides. State laws can be complicated and elusive. Couples may find peace of mind with a prenup, knowing how their marriage and/or divorce will play out.
Control
Even when the laws are clear, couples may still want to have a prenup if they do not want their marriage and divorce to be subject to certain default state laws. For instance, a couple residing in California may not want to follow the default law that all property acquired during a marriage should be divided equally between the spouses upon divorce. If the couple agrees that each spouse should keep as separate property what s/he earns, the couple may agree to such terms in a prenup. Spouses can take back control from the laws with a prenup.
Who Should Get a Prenup?
Any couple who wants to decide for themselves the “rules” of their marriage, whether that be for the financial or behavioral aspects of the relationship, should get a prenup.
How Does a Couple Get a Prenup?
First and foremost, the couple should discuss the ideal plan for their marriage. Once the couple has discussed the issues they care about and drafted an ideal plan, they should take it to their respective attorneys. There are certain subject matters prenups cannot cover and several requirements for a prenup to be valid.
A few of those requirements are:
Both parties must engage in full disclosure of their respective finances and assets at the time the prenup is executed.
If the prenup will address spousal support, each party must have independent counsel represent them.
Both parties must sign the document in the presence of a notary public.
Couples who are contemplating a prenup should consult a family law attorney to be sure their prenup is valid.
Cordial Family Lawyers can help you and your partner gain control and predictability over the “rules” of your marriage and divorce.
Contact us at info@cordiallaw.com.