Interestingly, premarital agreements have been in place for centuries with the most modern being traced back to 16th century England! What is a premarital agreement? Simply put, a premarital (or prenuptial) agreement is a contract entered into by two parties in the anticipation of marriage. The agreement often includes the financial rights and obligations of each party, property and debt division should the marriage dissolve, and right of each party in the event of death.
Premarital agreements serve to establish a division of assets and debt between two parties while their relationship is harmonious, in effort to have a clear and streamlined outcome in the event of divorce or death.
We’re engaged. Do we need a premarital agreement?
It’s probably a good idea if you’re asking. They can actually foster trust and open communication in a partnership.
Is there a significant age difference between you and your partner? This can mean that one spouse will enter the marriage with more significantly assets.
Do you have children of a prior relationship and you want to protect their inheritance?
Do either of you own property or have you received an inheritance that you would like to keep separate from your marital assets?
Are you young and your earning potential is still being determined or are you planning to accumulate significant debt?
What should a premarital agreement address?
o Will either party receive or pay spousal support (alimony)?
o Which assets are separate property?
o Which assets are marital property?
o How will separate and marital debts be divided?
o What will happen to the primary residence?
o Who will receive your assets and debt when you pass away?
Can’t we just write our own?
o You can, however there are statutory requirements that must be met for the premarital agreement to be valid.
o If there are any ambiguities in your agreement, it may not operate as intended upon divorce or death.
Did you know that there are certain items that cannot be included in your premarital agreement? For example, child support and child custody decisions may not be included in a premarital agreement.
What if we already got married? You have options…call us for an appointment today!