Prenuptial Agreements (Premarital Contract) are like insurance policies. You do
paperwork, and then hope you'll never need it. However, since half of marriages end in divorce within
first seven years, you may want to consider a prenuptial agreement before you walk down
aisle and say, "I do." Since you could later be engaged in a nasty, costly, and emotionally draining divorce some day, you should consider a prenuptial agreement as a precaution. Below we have given you some information on what is in a prenuptial agreement and whether it could be useful for you.
A prenuptial or ante nuptial agreement is a document signed by two people who intend to be married. It describes their rights and obligations should they get divorced. A prenuptial agreement informs
court how they want their assets and property divided up.
Divorces become messy when parties cannot agree on
distribution of property, such things as
house,
house, stocks, and bonds and whether one party should pay
other alimony, now known as "maintenance" in most states. Assume that
husband has $1,000,000 in his own name prior to
marriage. A properly drafted prenuptial agreement can award that same $1,000,000 to him after a divorce, notwithstanding what he does with
money, such as purchasing a home in joint tenancy or shifting
money into other accounts. Without a prenuptial agreement,
wife might be entitled to one-half of
$1,000,000 or more, depending on
financial circumstances of
parties at
time of
divorce. The prenuptial agreement is a powerful and valuable tool that can favor
husband, protect
wife, or serve both of them fairly. It is a question of circumstances and intentions.
Candidates for prenuptial agreements used to be just older individuals with huge estates that they wanted to protect from gold diggers for their children from previous marriages. Since more millionaires are born every day,
candidate pool is growing by leaps and bounds. Now everybody has something to protect: an unpublished author,
budding inventor, anybody with a lucrative profession or a good idea. So, before you dismiss
idea of a prenuptial agreement, assess your situation in life and your long-term future in deciding whether a prenuptial agreement is right for you.
Consider at length
nature and extent of your present and possible future assets. A prenuptial agreement can be a very simple document running only a few pages that segregates each party's assets owned before
marriage, or it can be a very complicated document that runs dozens of pages because it deals with income and assets acquired during
marriage,
payment of debts, attorneys' fees, alimony/maintenance, and other financial matters. The next hurdle is raising
issue with your intended spouse, a very unromantic event. It helps to get it over with early. Perhaps you could blame it on someone else, such as your parents who may want to involve you in a family business, or possible business partners.