What is a Prenuptial Agreement?
When contemplating a Prenuptial or Postnuptial Agreement, it is important to work with an attorney who understands how to draft valid and enforceable agreements. This includes having both spouses being represented by their own attorney. Using the Collaborative process to navigate these negotiations and discussions has shown to be beneficial in helping to reach an agreement that furthers the interests of both spouses.
What is a Prenuptial Agreement?
A prenuptial agreement is a contract that couples sign before marriage to determine each spouse’s property and financial rights and can protect their business, retirement benefits, and other assets.
Before couples enter into a prenuptial agreement, they must disclose to each other their full financial picture as to assets, debts and incomes. This is the best time to make a financial plan as to how to pay bills, save for the future, and provide for extended family members such as aging parents or children previously born from a prior relationship. The prenuptial agreement should include what happens if they divorce and if one of them should die.
Having these difficult conversations about money before you marry is easier than having them when contemplating divorce.
What is a Postnuptial Agreement?
A postnuptial agreement is a contract that couples sign after getting married. Just like a prenuptial agreement, the contract defines each spouse’s property and financial rights and can protect their business, retirement benefits, and other assets in case of divorce or death. It can help preserve your marriage by resolving financial issues between you and your spouse by defining financial boundaries.
Benefits of Prenuptial and Postnuptial Agreements?
There are several benefits and advantages in having a Prenuptial or Postnuptial Agreement, including:
Financial Planning – This is an opportunity for you and your spouse to make a financial plan during your marriage, and even if your marriage ends due to divorce or death.
Preserving Assets – The agreement can make provisions to preserve assets such as real property, retirement benefits or business interests. Some businesses are requiring partners to enter into prenuptial or postnuptial agreements, so that the business is not negatively affected by a divorce or death.
Tailored Agreements – The agreement can include provisions that are specific to the spouses whether it includes an alimony provision or a determination of each spouse’s separate or non-marital property.
Control -The agreement gives spouses control over their finances, if their marriage ends in divorce or death.
Legal Fees Reduced – Entering into an agreement that defines the financial rights of each spouse if the marriage ends in divorce reduces legal fees that are traditionally spent in divorce proceedings trying to determine those rights.