Prenuptial agreements (also known as "prenups") are increasing in popularity after years of having a negative connotation. Negotiating a prenuptial agreement can be a pleasant experience, and serve as an important financial planning tool for a couple. Below are some quick who, what, why questions and answers in regards to prenups and see why clearing up misconceptions of what a prenup is can be very important for you and your soon to be spouse.
Who could benefit from a Prenuptial Agreement?
If you have any sort of property, asset, or debt, you may be a good candidate to at least sit down with an attorney and further explore whether having a prenup would be right for you and your spouse.
If you own or have a share in a business.
If you or your soon to be spouse have a child or children from a previous relationship.
One person has significantly more assets coming into the marriage.
If at least one of you have a significant amount of debt.
What is a Prenuptial Agreement?
A prenuptial agreement is a contract between a couple negotiated and signed prior to their marriage. Just like any other contract you enter into, it is often highly recommended that you discuss the provisions of the contract and your rights with an attorney before making an agreement.
Why have a Prenuptial Agreement?
Speaking generally about a prenuptial agreement, they are excellent ways to discuss decision making during the marriage in regards to assets, finances, and debts.
It is often much, much easier to negotiate and decide important issues while you are on good terms with your partner. Bad divorces can be hard to work out over hurt feelings, and if you can't reach an agreement, a judge will decide your case (often after great expense on legal fees and time invested).
When should a Prenuptial Agreement be done?
For a prenuptial agreement to be upheld, courts will expect that there was enough time for there to be a full and truthful disclosure of all assets by each person. The agreement needs to be voluntary, and each person should have reasonable opportunity to consult with independent legal counsel regarding the agreement.
How much does a Prenuptial Agreement cost?
Usually, a Prenuptial Agreement can be drafted with input from the client on a flat fee basis. The fee is usually determined based off the amount of work that will need to be done.