What should you include in your prenuptial agreement?

What should you include in your prenuptial agreement?

| Jul 27, 2020 | Uncategorized

You and your fiance have already talked about it, and you agree that a prenuptial agreement makes sense. Why not set the terms for a potential breakup now while the two of you get along and can reach reasonable compromises?

Agreeing to a prenuptial agreement doesn’t mean you expect your marriage to fail. On the contrary, it means that you want to start married life off the right way with shared expectations about your relationship and what will happen should it end. What should you include in a prenuptial agreement to maximize your benefit from the document?

Outline what assets you wish to keep separate

One of the most important functions of a prenuptial agreement involves allocating specific resources as separate property. You can agree to terms on existing property, as well as possessions or assets you intend or plan to acquire during the marriage. You might agree, for example, that each spouse will solely retain any business that they start during the marriage.

Whether you decide to retain your own retirement accounts, safeguard a future professional practice or protect items you already own prior to marriage, earmarking particular possessions and assets as separate property in your prenuptial agreement will protect them from risk in the event of a divorce.

Include any financial terms you agree on now

If you agree that there’s a specific way to split your property if you should divorce that will be fair to both of you, it is best to commit those terms to writing. Being as specific as possible when outlining those terms will help ensure there’s no confusion between you now or in the future if you do divorce.

Make sure that you have protection in the documents

When a prenuptial agreement only benefits one spouse, the courts may decide that it is an unconscionable contract. It’s important that both you and your spouse ask for protections and make concessions in order for the document to be valid. A prenuptial agreement, like any contract, should benefit both parties.

You will also want to have your own attorneys review the document. That way, both of you will have a full understanding of the implications of the contract, which will improve the likelihood of the courts upholding it later.