How to Write Up a Prenuptial Agreement?
A prenuptial agreement is a legal contract between two people before they become married. It lays out what will happen to their assets if they divorce. It also provides protection to the financially weaker spouse during a divorce. The agreement must be signed by both spouses and notarized. Creating a prenup is a difficult decision for many engaged couples. However, it is essential that both parties have their interests protected.
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Often, a prenuptial is used to protect children from prior marriages or for those who have been involved in business before they became married. The contract can also be used to establish a family’s responsibility for expenses. For example, if one spouse is not working, it may be necessary to establish a spending allowance to help cover the costs. A prenup can also outline how inheritance from previous marriages will be divided.
Depending on the state you live in, there are certain requirements for a prenuptial. It is always advisable to get expert advice from an attorney. A professional mediator can also help negotiate a prenuptial. The agreement should be clearly defined to ensure that it will be effective in court.
In most states, the legal spouse will inherit a majority of the assets after a divorce. This means that one partner may have a significantly higher income than the other. It is important to have a clear idea of the value of all of the assets in the marriage. This can include real estate, investments, bank accounts, retirement accounts, business ownership, and other items of considerable value.
If you own a home or other property, you should make sure that you list it in your prenup. You can include it as “shared marital property” or keep it separate. Keeping your home separate from your partner is especially important if you have children from a previous marriage. You should discuss this with your partner in advance of drafting the prenup.
Before you sign a prenuptial, it is a good idea to discuss with your attorney any financial issues that you may have. It is also important to specify the assets and liabilities of each partner. These must be fully disclosed in the agreement to avoid future disputes. In addition, it is a good idea to include a “sunset” clause that will allow the agreement to be revised as needed. This will encourage the couple to go back and review their prenup at regular intervals.
A prenuptial can be an uncomfortable conversation for many couples, but it is important to have a discussion about what you will own and how your assets will be distributed in the event of a divorce. An attorney can help you develop a document that reflects your individual needs. The agreement should be easy to understand, but should also contain a specific list of assets that will be separate. This will make it easier to determine what will be divided in a divorce.
If you have a significant amount of wealth, it is a good idea to include it in your prenup. This will enable you to be able to control your retirement accounts and other investment funds. You should also specify whether your business is separate property or marital property.