When two people start a relationship and get married, the prospect of separation and asset split is the last thing on their minds. This situation is very natural, as it’s difficult to imagine a time when you’ll split paths and then live on your own when you’re tangled in the thrill of beginning a family together.
However, in the US, almost 50% of couples end up in separation. Therefore, an integral part of planning to become a husband and wife involves contemplating all possibilities, including those you’d rather not face.
For many couples, a prenuptial agreement seems quite complex, but you can use templates and automatic builders to create this document without engaging a legal expert. For example, here, you can view a template by FormsPal that you can fill out and download for free.
But before you consider this agreement, make sure you’ve had a deeper understanding of it. It will be easier to make well-grounded choices if you’re adequately informed about all the legal intricacies of a prenup.
What Exactly is a Prenup and How Does it Work?
A typical misunderstanding concerning prenups is that they’re a legal tool utilized by wealthy partners in civil proceedings. Although famous celebrity breakups may confirm that myth, the reality is far more ordinary.
A prenuptial contract is simply an agreement among couples. It defines the resources and obligations that each of them provides to the marital relationship and the privileges that each side will have during their nuptial and separation. Prenups could also be utilized after a partner’s death to safeguard the spouse’s privileges and rights.
In a nutshell, this contract is an extra element of the family planning process applied to secure the finances and property of spouses and their kids.
Is a Prenuptial Agreement Good for You?
Thinking about whether a prenuptial contract is suitable for both of you is an important decision you need to consider together. Besides, each couple’s finances are different.
Thus, you both have to be open and honest with your present status and how this might change after you marry. A prenuptial contract entails several advantages, but they are not an ideal fit for everyone. Some people believe that their state’s divorce legislation is an adequate guardian for their requirements and that a contract is unnecessary for their circumstances.
Still, a couple-to-be enters a prenuptial agreement for many reasons. If either of these situations pertains to both of you, an agreement may be beneficial.
1. You’ve Got a Huge Financial Advantage over Your Partner
A prenup could safeguard your assets from becoming shared or spousal ownership.
2. You’re in a Tougher Financial Situation than Your Partner
Contracts aren’t really just for the rich. They could also apply to assure that the poor and deprived one is suitably paid in the time of separation.
3. You Run a Business
If you manage a company, a prenuptial agreement could guarantee that your spouse does not get a significant share in the business if your relationship ends. When a company’s owner or major shareholder marries, stockholders frequently demand that they sign a prenup agreement.
4. You Intend to Resign from Your Work to Nurture Your Kids
Giving up your career to marry and have kids can negatively affect your professional path and financial prospects. A prenup agreement can assure that you are fairly reimbursed for your time away from the workforce.
5. You’ve Decided to Remarry
A prenup agreement helps guarantee that your child’s entitlements are preserved if you’ve had kids from a past relationship. Succession legislation prioritizes the present partner, so kids from a past relationship won’t receive a part of their heritage if you don’t have a proper prenup in hand.
What Can Be Incorporated and What Can’t?
Once you’ve determined whether an agreement is good for you, it’s time to decide what to incorporate in the prenuptial settlement and what to exclude. Some individuals wrongly believe that these contracts are to be utilized as a tool in separation cases only.
However, there are rigorous guidelines for what is eligible and non-eligible for incorporation in a contract. Breaking them could lead to the deal being disproved if tested in the law court.
What to Incorporate:
- Marriage and individual assets.
- Financial commitments during marital relationships.
- Expenditure and savings plans.
- Accountability for debt.
- Plans for the families.
- Property that belongs to the parentage.
- Spousal support or alimony.
- Assets allocation in a separation case.
- Federal legislation enforcing the contract.
What cannot be incorporated:
- Kids assistance
- Personal affairs rules
- Custody of Children
- Forfeited joint custody
- Anything that is thought to be unlawful or unethical
If you’re thinking about signing an agreement, make sure you know these terms and check your prenup for non-eligible items so that you don’t run into any issues.
Professional Legal Advice is Crucial
A prenup contract must be drafted by a professional with knowledge in marital legislation and the norms regulating contracts in your area to become legally binding. Preferably, each of the spouses should seek professional legal consultation before signing the prenup to guarantee that your respective privileges are adequately and fairly addressed.
Having different attorneys also assists in preventing any misconceptions or misinterpretations that may develop throughout the planning phase, guaranteeing that you two are comfortable with the resulting deal.