Prenuptial agreement also called premarital agreement or just prenup is something that couple about to be married should discuss. As an old adage says, "marriage is not a bed of roses" as many tend to imagine it. Marriage from day one means responsibility. However, some people may not end up with a happy ending, instead they get a divorce.
For some people, prenup agreement will help them to maintain their goals in case the marriage doesn't work out. A prenup agreement will safeguard assets, protect you from your partner's debts, and aids in smooth divorce proceedings without resentment.
What is a prenup agreement?
A prenup agreement or premarital agreement is simply a contract that allows the soon to be couples to decide on how their assets and debts will be divided if their marriage will end with a divorce or if one spouse dies. The agreement becomes authentic when the couples get married.
Essentials of a prenup agreement
Timing
If you are planning to secure a prenup agreement, make sure to present it before the wedding invitations has been released. It should be free from duress, overreaching, or coercion surrounding its negotiation and execution. In fact, an agreement presented on or a day before the wedding day may be illegal due to duress.
Disclosure
It should disclose the detailed list of assets and liabilities. It is advised that these statements should be made on the days closer to the time of marriage to certify that the time of the agreements execution is in its latest figure. The agreement should include bank accounts, income tax returns, security accounts, real estate and mortgage information, automobile and other vehicles, and any outstanding loans. Furthermore, if you own a business, the complete information of the business like the name, nature of the business, estimated net worth, and the valuation method used to compute the value should be disclosed. A CPA will be able to help you to prepare an outstanding financial statement.
Independent Counsel
Although you have fully understood your prenup agreement, in most cases, the independent counsel will be able to judge the fairness and enforceability of the prenup agreement. The independent counsel is a factor that validates whether the agreement was made voluntarily or whether it was unconscionable when executed. However, in most states, consulting an independent counsel is not mandatory.
Fairness
One of the important components in prenup agreement is the fairness of the contract. It indicates the fairness to provisions on distributions of assets and alimony. If the spouse is unable to obtain daily needs and living in substandard way or close to it, the agreement are otherwise unconscionable and therefore will not be enforced. Additionally, the agreement does not include about temporary alimony such as spousal support while the divorce case is still unresolved. Furthermore, any agreement that does not conform to the state-defined public policy cannot be enforced.
For some people, prenup agreement will help them to maintain their goals in case the marriage doesn't work out. A prenup agreement will safeguard assets, protect you from your partner's debts, and aids in smooth divorce proceedings without resentment.
What is a prenup agreement?
A prenup agreement or premarital agreement is simply a contract that allows the soon to be couples to decide on how their assets and debts will be divided if their marriage will end with a divorce or if one spouse dies. The agreement becomes authentic when the couples get married.
Essentials of a prenup agreement
Timing
If you are planning to secure a prenup agreement, make sure to present it before the wedding invitations has been released. It should be free from duress, overreaching, or coercion surrounding its negotiation and execution. In fact, an agreement presented on or a day before the wedding day may be illegal due to duress.
Disclosure
It should disclose the detailed list of assets and liabilities. It is advised that these statements should be made on the days closer to the time of marriage to certify that the time of the agreements execution is in its latest figure. The agreement should include bank accounts, income tax returns, security accounts, real estate and mortgage information, automobile and other vehicles, and any outstanding loans. Furthermore, if you own a business, the complete information of the business like the name, nature of the business, estimated net worth, and the valuation method used to compute the value should be disclosed. A CPA will be able to help you to prepare an outstanding financial statement.
Independent Counsel
Although you have fully understood your prenup agreement, in most cases, the independent counsel will be able to judge the fairness and enforceability of the prenup agreement. The independent counsel is a factor that validates whether the agreement was made voluntarily or whether it was unconscionable when executed. However, in most states, consulting an independent counsel is not mandatory.
Fairness
One of the important components in prenup agreement is the fairness of the contract. It indicates the fairness to provisions on distributions of assets and alimony. If the spouse is unable to obtain daily needs and living in substandard way or close to it, the agreement are otherwise unconscionable and therefore will not be enforced. Additionally, the agreement does not include about temporary alimony such as spousal support while the divorce case is still unresolved. Furthermore, any agreement that does not conform to the state-defined public policy cannot be enforced.
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