Who could forget that 'Seinfeld' episode when George boldly asks his fiancée Susan to sign a prenuptial agreement? She cackled hysterically before famously declaring, "Yeah! Gimme the papers...
I'll sign 'em!" as George sat that there embarrassed and stunned.
But Susan's reaction is not that far off from the real thing.
Many people tend to bristle at the thought of signing a prenuptial agreement, calling them romance-killers right before the big "I do".
Then there's the other side of the debate that argues these contracts are solutions to navigating the tricky world of finances should a marriage fall apart.
With more than half of all marriages in North America ending in divorce, more and more couples are opting for a prenuptial agreement before heading down the aisle.
These contracts are no longer there just to protect the wealthy.
They are also becoming popular amongst average couples who just want to be upfront about the financial situations they are in.
Below is a tutorial to help you understand the basics of prenuptial agreements.
Purpose A prenuptial agreement is a signed and notarized contract that is legally binding.
It lays out how a couple will handle the finances in the event of a breakup, after discussing the assets and debts in an honest manner.
The contract usually contains terms regarding the division of property and the care of children should a marriage end in divorce.
Positive aspects Despite the agreement's reputation for being a romance-killer, the drafting of this contract could be a positive and refreshing experience for the couple.
It does not necessarily signal the anticipation of a bitter divorce.
But rather, serves to protect the assets that each party worked so hard for.
Prenuptial agreements are also a good way to spare the children the ugliness of a long, drawn-out battle over finances should the marriage end.
The financial future of children from a previous marriage can also be secured and protected under this type of agreement.
Negative aspects The signing of a prenuptial agreement has its negative aspects as well.
It may give the impression to others that there is no trust between the couple.
On the other hand, if one party refuses to enter the agreement, it may look as though he/she is entering the marriage for ulterior motives.
Down the line, prenuptial contracts could be deemed invalid if it is discovered that one of the parties was not being truthful about their financial situation.
Recognition There are some districts that do not recognize the legality of prenuptial agreements.
Be sure to check with an attorney to make sure all aspects of your contract are valid in your region.
And remember, this agreement is only recognized if signed before the start of your marriage.
Required elements for recognition i) Agreement must be in writing ii) Must be entered by both parties voluntarily and without force iii) Must contain complete and/or fair disclosure of all debts and assets heading into the marriage iv) Agreement cannot contain terms that are excessively unfair and prejudiced against one party v) Must be signed by both parties before a notary public Thoughts to keep in mind When drafting a prenuptial agreement, the most important thing is to remain honest with your partner.
Don't be shy about laying all your financial cards on the table.
The process does not mean the marriage is doomed for failure.
But rather, it is a way to protect you from the unforeseen circumstances of life.