Prenuptial Agreements: To Sign or Not to Sign?
Benefits of a Prenuptial Agreement
The most obvious benefit of a prenuptial agreement is protecting your own financial stability. When there is no prenuptial agreement in place, the division of assets during a divorce will depend on the state in which you live. There are nine “community property” states, including: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In community property states, you and your spouse share assets, property, and debts equally regardless of whose name is on the title, registration, or deed. In the remaining “equitable distribution” states, if your name appears on an asset, you are considered the owner; however, your spouse has the legal right to claim a fair and equitable portion of those assets in a divorce. Prenuptial agreements can protect your property, help keep your finances separate, protect you from your spouse’s debt, and keep gifted property in your birth family.Prenuptial agreements can also protect the financial stability of your children. If you marry and are bringing children into the relationship, whether they are minors or adults, a prenuptial agreement can ensure that your children inherit their share of your property. Contrary to popular belief, a prenuptial agreement can be very beneficial to the spouse who is not the primary earner. If a spouse plans to give up a lucrative career after the marriage or provides nonfinancial support to the primary earner, a premarital agreement can ensure that the spouse is fairly compensated for that sacrifice if the marriage doesn’t last. Prenuptial agreements are also beneficial in that they clarify responsibilities during the marriage, such as the filing of tax returns and paying bills, and reduce expenses and conflict if a divorce occurs, typically limiting lengthy and expensive court proceedings.
An Enforceable Prenuptial Agreement
If you go through the time, effort, and aggravation to get a prenuptial agreement in place, it is important that it is enforceable. The enforceability of a prenuptial agreement varies from state to state, but most states do not allow the restriction of child support, custody, or visitation rights; allow you to give up the right to alimony; encourage divorce – such as a financial incentive for divorce; or allow you to include nonfinancial matters. Courts look at prenuptial agreements carefully; therefore, it is important that the agreement is clear, understandable, and legally sound. It is also important for you and your partner to have separate lawyers draft and review the agreement, so everyone has a fair opportunity to participate in the process and understand what the agreement provides.If you are considering marriage and contemplating entering into a prenuptial agreement, find a premarital agreement lawyer by quickly posting a short summary of your legal needs on Legal Services Link, and let the perfect attorney come to you!
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Posted - 09/26/2016
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