8 important things to consider before signing a prenuptial agreement

Today we want to discuss important things to consider before signing a prenuptial agreement Talking about love with your intended life partner can sometimes feel awkward and scary. But marriage counselors and lawyers these days relate to prenuptial agreements quite differently.

According to many experts, a prenup is a legal agreement before marriage to share the responsibilities and rights of assets and liabilities.

Hence, this indicates that intelligent couples are less likely to end up in divorce or long-term separation. And the prenup is just a heads up of possible events.

If you’re interested in learning more about a prenup, read on to find out eight important points before entering into a prenuptial agreement with your better half.

What is a Prenup?

A prenuptial agreement or prenup is a written agreement between a husband and wife. In this agreement, both list their assets and liabilities. It declares the rights of each partner. Furthermore, this agreement states how the assets are to be distributed when the marriage is legally dissolved.

What to ask for in a prenup An important aspect that every partner should consider carefully. Generally, both partners consult a legal attorney to clarify pre-up clauses.

The attorney will help you understand your financial goals, appropriate spending habits, taxes, debt allocation, contract validity, and more.

But you can get an overview of what to expect and consider before moving forward with a prenup with your partner. You will get details in the next segment.

8 Important Things You Must Consider Before Signing a Prenuptial Agreement

It is foolish to enter into any legal contract without checking its specific aspects. And you don’t want to subvert your lifelong love, do you?

Therefore, you should Start preparing for a prenup Before the good day. Find out what essentials comprise a prenuptial agreement before actually signing it. You both need to know what you are aiming for in your marriage from a financial and family perspective.

So, let’s go over the important things you should think about:

1. Cost of a Prenup

A prenup can cost between $1,500 and $9,000. It can cost more depending on the criticality of assets and liabilities.

Your attorney may charge a flat fee for drafting a contract with all required clauses. However, if one or both partners want to add any special requirements, or something more complicated arises, you may be charged a flat hourly fee.

2. People who need a prenup

People who need a prenup can be classified into different situations. You must consider your circumstances before signing a prenup.

A prenup may be required if:

  • One or both partners were previously married; Usually in an unhappy marriage
  • There is a financial disparity, meaning one is richer than the other and looking for an honest spouse
  • One or both parties have children; Indicates a financial security for them in case of divorce or death
  • One partner has enough debt, so the other partner does not have to bear the responsibility during the marriage or after the divorce.
  • One or both partners insist on privacy about personal life

So, these are some of the good aspects that represent reliability and transparency that a prenup can ensure for both partners.

3. Premarital Property Vs. Marital property

Images of women shaking hands

Photo by Mikhail Nilov on Pexels

A prenup can list and dispose of property acquired both before and after the marriage between the partners.

Property acquired before marriage is called pre-marital property. Conversely, marital assets are those that you inherit during marriage.

Essentially, a prenuptial agreement will see that your assets are settled and entitled to the right partner in a secure manner. It’s about stamping commitments on papers, so none of the partners can deny or twist the delivery later.

4. Fairness and honesty

Speaking of fairness, a prenuptial agreement must be fair to both partners in terms of property and debt allocation. Most importantly, courts can disagree and exempt the prenup if it is ambiguous or unfair to one of the partners.

In short, prenuptial agreement assets should not be divided so that one party receives a disproportionately larger amount than the other.

Also, both parties should be honest enough to disclose their financial records in detail, including bank statements, stocks, bonds, estates, taxes, debts and liabilities.

5. Amendment opportunities in a prenup

Don’t go with rumours, as the prenup can be amended as often as both of your partners see fit. However, the attorney will ask for clear agreement from both partners regarding the change.

Also, there is scope for a ‘sunset clause’ which means you can attach an expiry date to the contract. This will help both partners revisit the attorney with additional changes over time if necessary

6. Consider child support

This is something that a prenup cannot support for partners; Child support and custody.

You can not expect a prenuptial agreement to ensure a financial provision for children. Also, there is no opportunity to dictate custody of children, including parenting, schooling, religion, etc.

These are concerns that the court should consider and decide in the best interests of the children.

7. Incorporation of a Prenup

The sole purpose of the prenup is primarily focused on financial provision, debt allocation, inheritance, and partner support. If you’re expecting other social or idiosyncratic support from it, it shouldn’t be in the cards.

What you can’t expect from a prenuptial agreement is:

  • Section encouraging divorce
  • To encourage illegal activity
  • Non-financial or irrelevant clauses

8. Chances of Invalidating a Prenup

You should not take a prenuptial agreement as binding. It may become invalid after receiving a reasonable objection from one of the partners.

The reasons for which a prenup can be revoked are:

  • Unfair or unreasonable financial provisions
  • Dishonesty in making a full financial disclosure
  • Signing a prenup under pressure or in an unstable state of mind

last row

So, you should consider this before signing the prenuptial agreement. A prenup refers to spousal support from a financial perspective, without applying emotional or social norms.

Talk openly with both your spouse and legal attorney before drafting a prenuptial agreement. Discuss all possible but reasonable financial aspects, so that no one is mistreated or cheated.

It is also important to know that courts will never justify or uphold unreasonable prenup clauses. Instead, courts can void contracts to avoid insanity and unfair publicity.

Read more Lifestyle and Relationship Articles A ClichéMag.com
Image provided by Flickr, Unsplash, Pexels, Pixabay And Creative Commons