7 faqs about prenuptial agreements

7 FAQS ABOUT PRENUPTIAL AGREEMENTS

What is a Prenuptial Agreement?

A prenuptial agreement, or “prenup,” is a written agreement entered into before marriage. It establishes what would happen to the assets of both partners in the event of a divorce. This contract may also lay down the rights to financial support in case the marriage ends by death or divorce.

What Does a Prenup Usually Include?

• Division and ownership of property

• Division and ownership of liabilities

• Spousal support

• Inheritance of property

A prenuptial agreement will typically include the following:

Should I Have a Prenuptial Agreement?

• Already have substantial property or financial assets.

• Own or co-own a business.

• Own your own practice.

• Have a partner with a huge difference in income.

• Are taking property from a previous marriage and wish to keep it separate for the children from that marriage.

The signing of a prenup is recommended if you:

We Do Not Own Much, Should We Still Sign a Prenup?

• Could receive a large inheritance some point in time.

• Expect a significant increase in your income in later years.

• Plan to support your spouse financially through post-secondary education.

• Have parents whose financial future you need to secure.

• Have children from a previous marriage.

• Do not want the courts to decide the distribution of property and money in case the marriage ends.

Even if you and your partner do not currently own much, a prenuptial agreement is recommended if you:

What Makes a Valid Prenuptial Agreement?

• It is called an “agreement” because it requires both parties to voluntarily sign the contract.

• The agreement must be in writing.

• It must be signed by both parties .

• It must be signed by witnesses.

• It should spell out all assets and liabilities, which requires both parties to provide full disclosure.

Here is what makes a valid prenuptial agreement:

What is Not Included in a Prenuptial Agreement?

• Determination of child custody, child visitation rights, or child support payments.

• Any provision that is beyond the distribution of property, financial assets and liabilities.

• Any demands from a spouse in terms of non-monetary responsibility.

A prenuptial agreement should not include:

The courts will not recognize these things, even if they are included. Moreover, you run the risk of the courts invalidating your prenuptial agreement.

What Are the Steps to Follow for Making a Prenuptial Agreement?

• Let your partner know that you are considering a premarital agreement.

• Make a list of all your assets, including real estate, savings, shares and collectables.

• Make a list of all the sources of income.

• Get an idea of what you are trying to achieve.

• Request for your partner to make similar lists.

• Meet an attorney to ensure that you understand your rights and obtain legal advice on the prenuptial agreement you are considering.

• Encourage your partner to hire a lawyer as well.

Here are the steps to follow in case you are about to get married:

Can’t I Make the Prenup Without Consulting an Attorney?

• You need to understand your rights

• You need to know what to include or leave out from the agreement

• You would want the agreement to be held valid by a court and legally enforceable

• Courts are more likely to uphold the terms of a prenup that has been signed by both parties after understanding their legal rights.

Yes, you can. But it is not recommended.

Seeking an Experienced Attorney with a Personal Approach to Prenuptial Agreements?

Visit: www.ruvololaw.com

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