Your marriage is definitely the most exciting periods of your life. While the joy of spending your entire life with your beloved is unmatchable, it’s important that you come back to reality and analyze the financial impact of your partnership. Marriage brings with it happiness and companionship only if it lasts forever.
While you must have never thought of getting separated from the love of your life, you cannot predict your future. Some unfortunate events or unfavorable situations can lead to unexpected outcomes. However, it is better that you stay protected and prevent future loses.
Getting a prenuptial agreement is one of the best solutions. On one hand, where a prenuptial agreement can be a strong safeguard for your pre-marriage finances; it can lead to emotional resentments later.
A prenuptial agreement is a legal contract that separates your pre-marriage finances from the ones you hold in a partnership. In case of a divorce or separation, the prenuptial agreement protects your ownership concerning those finances. In absence of a prenuptial agreement, your pre-marriage financial assets will be at the risk of being split in case of a divorce.
If you have made your mind to sign a prenuptial with your partner, you need to be careful about certain things. Here’s a list of things that should be considered in a prenuptial agreement:
#1. Premarital Assets & Debts
While signing a prenuptial, you should be sure about the benefits and obligations of your partner. It is mandatory for a prenuptial agreement, and also it gives both of you a clear picture of your monetary concerns.
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#2. Conjugal Property
Conjugal property lists the possessions and obligations that the couple will cumulate after their wedding.
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#3. Supervision Of Assets & Income
There is a high possibility of couples to have different styles of spending cash. One may be a miser while the other a spendthrift. A couple with opposite spending habits can work just fine only if they figure out alternative means of spending their hard earned money.
#4. Credit & Debit
Don’t feel uncomfortable while checking your partner’s credit reports. Now that you both have agreed on signing the agreement, it is important that you have a thorough discussion regarding the financial assessments concerning any old obligations or debts.
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#5. Potential Alimony
Now that you have put everything on the table, why not discuss the spousal support or alimony as well? You can do it if you are comfortable, else skip talking about it just before you are getting married. It might lead to some apprehensions.
#6. Endowments From Families
There are certain families in which the relatives or parents give away a substantial amount of money to the couple in the form of blessings, advance or a home up front installment. It is important to discuss the treatment of that money.
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#7. Levy
After the wedding, the accounts of the couple are interlaced for duty purposes at least till they give their consent to the premarital agreement. It is important to look at their demeanor and suppositions related to your financial assessments.
#8. Advanced Education
There are possibilities that your partner wishes to pursue advanced studies. So instead of fumbling on such occasions, it is better to discuss each other’s desires and wishes to be sorted in the future.
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#9. Length Of The Premarital Agreement
You and your partner get to decide the validation of the prenuptial agreement.
#10. Business Proprietorship
If you or your partner (or both of you) have your individual businesses, then you should go over the uncommon issues before you sign the prenuptial agreement.
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Signing a prenuptial agreement comes as a big decision because it is packed with advantages. While your partner might feel susceptive to your decision, you can always make them aware of these benefits:
#1. Financial Stability
The most important benefit of having a prenuptial agreement is the financial security that you are assured of. Signing an agreement can ensure that even if things don’t go as you planned, you will still be able to manage your finances. While it is difficult to think of your marriage to end, it is smart to be prepared for the worst-case scenario.
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#2. Trust Issues
With the continuous rise in the number of divorce cases in the United States, it is impossible to judge its causes. Asking your partner to sign a prenuptial agreement may create some trust issues, it is just going to sound all good in the future. To eliminate any uncertainties from your partner’s mind, be careful about the claws that you add in the agreement.
#3. Help For Your Children
If you happen to have children during the divorce, a prenuptial is highly beneficial. A financial agreement like this will help in protecting your child’s financial stability. You’d be able to provide them their share in the assets that you shared with your partner. In states like Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington where the property and assets get divided equally irrespective of the presence or absence of an agreement, you might suffer heavy financial loses if you were the majority contributor. A prenuptial agreement can ensure that you and your spouse get what each of you deserves. When you sign an agreement, you eliminate all possibilities of any arguments between you and your partner because the agreement dictates all the issues.
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#4. Make Wise Decisions
When it comes down to signing your prenuptial agreement, be very careful and thoughtful about each claw that you add. If you are unsure about your decisions, consult your friends, family, and obviously your spouse. A prenuptial agreement is not only meant to develop emotional issues between the couples; it may sometimes give you more assurance if discussed properly. You and your partner can sit together and plan things for your future which can be transferred into a written agreement.
While all of it sounds great, thinking about the disadvantages of signing a prenuptial sound weird. But there could be setbacks once you sign those papers. Have a look:
#1. Uncertainty Of Your Marriage
If you and your partner both agree to sign a prenuptial, then there is a possibility that both of you are not sure about staying together forever. Marriage is an institution of love and should not be bound by some financial agreements. If you love your partner, then why would you think about separating, and if you have, then you are probably uncertain about your decision. It can kill the romance in your marriage.
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#2. Can Become A Burden In The Future
A prenuptial agreement is formed based on the current scenario. Future is unpredictable, and therefore your prenup may not be as helpful to you in the time to come. In case your situations change, the prenuptial agreement could get complicated. To avoid such problems, keep updating your prenuptial.
#3. Can Alter Your Lifestyle
When you sign a prenuptial agreement, you agree to share some portion of your assets and property with your spouse and kids. This will definitely alter your lifestyle. Once separated, you will surely have to sustain your livelihood on a comparatively lower percentage of funds.
#4. The Judge Holds The Power
All the agreements made in a prenuptial are subject to a judge’s opinion. When you take the agreement to the court, the judge will decide the validity and the reasonability of each claw. He can delete or amend them according to his judgment.
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A prenuptial agreement is just like any other contract whose lifespan depends on the terms that are included in it. Prior to getting married, the couple can decide all the terms and conditions of how things would function once they are unified. They can decide on the distribution of assets and properties in case of divorce or even death.
The longevity of a prenup completely depends on the couple’s choice. If a prenuptial agreement is silent about how long the future husband and wife intend for it to remain in effect, the agreement remains forever by default.
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Such contracts are not dictated by the state law. The life of a prenuptial agreement may be indefinite, but can be defined if the couple agrees to it. Both the partners, in agreement, can revoke it at any given time by superseding it with a second written agreement. This will omit the validity of the first agreement.
In cases of exception, some prenuptial agreements do have sunset clauses. These clauses cease the validity of the agreement. You and your future partner can decide the duration of the agreement which can vary between the first 10 to 20 years of your marriage.
It is better to not consider a prenuptial agreement as an end to your love or trust in the marriage, it should rather be taken as a safety guard option to secure the future of your partner, your kids and obviously yours too.
Do you agree that all couples should sign a prenuptial agreement? Let us know in the comment section below.
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