Nobody likes to think that their marriage is going to end in divorce, especially before they even say their vows. However, the truth is that more than a third of all marriages will result in divorce, so it is best to address the issues ahead of time. You may feel afraid to discuss a prenup with your future spouse, but it can actually be a way to ensure that you reduce the possibility of a contentious divorce.
What is a Prenuptial Agreement?
A prenuptial agreement is a legal contract between two people prior to their wedding. A prenuptial agreement is also simply called a prenup. Many people think that a prenup is only applicable to those who are extremely wealthy, but in actuality, a prenup can be helpful for any couples who are uniting in marriage. A prenup can make things less complex, especially when there are previous marriages and divorces.
What to Include in a Prenuptial Agreement
The more comprehensive a prenuptial agreement is, the better you will be able to enforce it later. A prenup should address some essential issues, including:
- Individual assets
- Personal property
- Real estate
- Future earnings
- Investments
- Inheritances
- Spousal support
It is imperative to address specifics regarding how distribution will be handled in the event of divorce or the death of the spouse. It can also specify exactly what property is to be considered marital property and which is to remain separate. This can be difficult without a prenup in place. Importantly, you cannot address child support or child custody matters in a prenup.
List Individual Assets
One of the most important aspects of a prenuptial agreement is the full disclosure of assets by both parties. A comprehensive prenuptial agreement should list all the property and other individual assets that each party owns prior to marriage. Parties must also disclose debts. You must take care to provide complete and truthful details. If full disclosure is not made, it could be a cause to contest a prenuptial agreement later. When you draft a prenup, you will need to think about the future and how you will handle assets that you may commingle after marriage. For example, if one party owns a house prior to marriage, it is likely that both parties will pay the mortgage and upkeep expenses from joint finances. This can make the distribution of the marital home more difficult unless you have provided details in a prenup.
Protecting Your Business
One important reason to put a prenuptial in place is to protect your business. If you have an established company before your wedding, you will want to ensure that you will not lose anything if you later divorce. The prenuptial agreement should specify the details of the business so there are no questions later. A good prenup will protect a business from being divided as marital property in a divorce. In addition, the prenup should provide the value of the business so the valuation will not be argued in a divorce proceeding.
A prenup is a necessity in most marriages today. It will protect both parties and help to resolve issues later if a couple divorces. To learn more about prenuptial agreements, contact us at Arnold & Smith, PLLC, at (704) 370-2828 to request a consultation with our legal team.
Source:
https://www.ncleg.net/enactedlegislation/statutes/html/bysection/chapter_50/gs_50-20.html
https://www.law.cornell.edu/wex/prenuptial_agreement
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https://www.freeimages.com/photo/engagement-1329853
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