Consideration in a Prenuptial Agreement
Among the many benefits of having a prenuptial agreement is that it provides a clear understanding of the value of the family assets. This may be helpful if one spouse has significant wealth or is going to inherit a lot of property from the other spouse. It also helps the parties know what to expect should they ever decide to divorce.
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A prenuptial agreement is a contract that outlines the assets that each party will be entitled to and the division of those assets if the marriage ends in divorce. The terms and conditions of the agreement should be written down and reviewed by an attorney before being formally executed. The agreement must also be signed by both partners. In addition to laying out the property that will be owned by each party, the agreement should also include an acknowledgement of the monetary or financial consideration for the contract.
The American Psychological Association reports that up to 50% of first-time marriages end in divorce. The best way to avoid the headache of a divorce is to prepare a prenuptial agreement. Having an agreement in place can help ensure that your family will continue to be a strong unit after the dissolution of your marriage. If one partner is a stay at home parent, a prenuptial agreement can protect your family’s inheritance from the non-working spouse. It can also define separate property, limit the amount of property that the non-working spouse can inherit, and prevent a non-working spouse from acquiring a portion of a business entity. It can also protect your spouse from poor credit habits.
The other perks of having a prenuptial agreement are that it can help ensure that your children from a previous relationship or a future marriage will benefit from your wealth. It can also protect the family business or assets that you inherited from your parents. However, it is important to have an attorney review your prenuptial agreement to make sure that it is legal and valid.
A prenuptial agreement is not the only option for couples that have significant assets. For instance, in some states, the court will also award a spousal support award to the lower-earning spouse. This is not the same thing as child support, and it does not go toward the cost of raising your children. It is intended to provide a financial cushion if you are the higher-earning partner. This is typically a good idea for those with large assets and little or no children.
The best way to go about making a prenuptial agreement is to sit down with an attorney. They can help guide you through the various aspects of the agreement, and they will be able to negotiate hard-to-negotiate topics. The best way to find an attorney is to find a specialist in matrimonial law. They will be able to ensure that your prenuptial agreement is in compliance with state laws and that it is fair to both of you.