Do You Need a Prenuptial Agreement? What You Need to Know.
Prenuptial agreements can be beneficial for all marriages, not just the wealthy. Here's why.
Many people have heard of prenuptial agreements and believe these documents only benefit the wealthy. They use these documents to protect their assets if the couple divorces, or so people imagine. However, these documents help countless couples today. What should a person know about this document?
What is a Prenuptial Agreement?
A person must first understand what a prenuptial agreement is. This document is a contract written and agreed to by two individuals before they marry. It differs from a postnuptial or postmarital agreement in the timing.
The document lists all assets and liabilities of each party prior to the marriage. In addition, it outlines the property rights of each party once the marriage occurs.
What Might This Document Include?
Premarital agreements typically cover the property rights of each spouse in a divorce or following the death of one partner. However, a family law attorney in Cullman may include other provisions.
For instance, some prenuptial agreements specify which partner will pay alimony if the couple divorces. It might include information detailing the amount of these alimony payments and how long the individual will make the payments.
Some agreements name the beneficiary of a life insurance policy. Other agreements dictate who will receive the money from pension funds or retirement plans when one partner dies.
This document may include additional provisions. These provisions might cover areas such as incapacity and student debt. An attorney works with the parties to determine which financial items they should include as part of this agreement.
Why Create a Prenuptial Agreement?
A person might want to know the benefits of creating a prenuptial agreement. This document protects them during a divorce or following the death of one spouse. How does it do so?
Children from Prior Relationships
Many couples with children are getting divorces today. They want to ensure their children remain protected when they remarry. The agreement outlines which property will go to the children and which property will go to the spouse listed in the agreement.
If this document isn’t in place, the surviving spouse might receive all the deceased parent’s assets. This would leave the children with little or nothing from their parent. The prenuptial agreement ensures this does not happen.
Financial Rights
A premarital agreement outlines the financial rights and responsibilities of each party in the marriage. This allows each party to know what they will bear responsibility for during the marriage. One partner won’t find they have more financial responsibilities than they can reasonably handle once the marriage takes place.
Divorce Agreements
Many divorces are contentious. When a prenuptial agreement is in place, couples find they avoid most arguments regarding property division and alimony.
People must recognize certain states will not allow a person to sign away their right to alimony. Other states carefully review any exemption of alimony and may force one partner to pay alimony if the other partner does not have an attorney representing them.
Debt Protection
One partner may enter the marriage with existing debt. The prenuptial agreement protects the other partner and ensures they do not become responsible for this debt in a divorce or after the death of the spouse. The partner that entered the marriage without debt could become accountable for the other partner’s debt if this document is not in place.
What Cannot Appear in a Prenuptial Agreement?
Certain provisions cannot be included in a prenuptial agreement. If a couple feels they need to agree regarding matters not permitted in a premarital agreement, they need a separate document covering these matters. What provisions cannot appear in this document?
Illegal Activities
No prenuptial agreement can include anything illegal. If the document does so, a court will strike it down. An attorney can review the document to ensure the partners include nothing of this type.
Child Support and Child Custody
Courts determine how much child support a person pays. Parents have little say in this matter today, as courts want to know the children receive the proper care regardless of what the parents choose to do. When calculating child support, courts look at the best interests of the child.
In addition, the premarital agreement cannot determine child custody matters. Every child should have a relationship with both parents, even when the parents are no longer together. A prenuptial agreement cannot interfere with this relationship.
Personal Preferences
Prenuptial agreements resolve financial matters in a divorce or following the death of one spouse. They don’t address personal matters. For this reason, courts prohibit the inclusion of provisions addressing these matters.
Challenging a Prenuptial Agreement
One party to a prenuptial agreement may challenge this agreement in court. Working with an attorney reduces the risk of the challenge being upheld.
However, a person signing this agreement needs to recognize this possibility. Why might a partner choose to challenge a prenuptial agreement, and in what situations might they succeed?
If a person commits fraud when drafting this agreement, a court will find it invalid. For example, they may not list all assets and debts.
The court will invalidate a document signed under duress, and the same holds when one or both parties did not have time to review the document fully or to seek legal guidance before signing it.
The court may also declare this agreement invalid for other reasons. For instance, if the document contains unreasonable provisions, the court may throw it out. The same holds when one or both parties does not follow the provisions outlined in the document.
Work with an attorney when crafting this document to ensure it will hold up in court. Individuals do not want to head into a divorce believing they are protected, only to learn this isn’t the case. An experienced family law attorney ensures the document fulfills all legal requirements, and a court will consider it valid.
Make an appointment today to speak with an attorney. Couples who do so find they have peace of mind. They know the document they agree to is legal, and each party will receive the protection they desire when entering the marriage.
