4 Basic Essentials of a Prenuptial Agreement

A prenuptial agreement, usually abbreviated as prenup is a written contract created by two people prior to marriage. The agreement can vary, but typically made to protect the assets of both parties in the event of breakup of marriage or divorce.

Premarital agreement is not only for the rich and famous. Nowadays, it is becoming a norm, a modest means used to specify and protect what each person's property rights as well as any debts will be after the marriage.

Here are the basic essentials of Prenuptial agreement:

Make a Valid Prenup

Each state has its own laws regarding the enforcement and validity of prenuptial agreements. So, if you do not want your private agreement to be thrown out down the road, the first move is to get your own counsel. If you are living in Southern Minnesota you can seek the advice of the family law attorney in Mankato, MN. It is highly recommended for both parties to be represented by independent lawyers to successfully carry out a valid contract.

Fairness and entered into voluntarily 

Both parties should voluntarily agree with the contract. Therefore, make sure not to draft a one-sided agreement. 

The agreement has to be fair; both parties should discuss the terms and conditions they want to be enforced with their lawyers. Thus, making a prenup agreement should be made months ahead before marriage and must not be rushed.

Agreement should be in writing and must be signed in the presence of witnesses.

Full disclosure

In general, full disclosures of assets and liabilities of both parties are required. 

Clarify financial rights and responsibilities during marriage with or without children.

Set the terms

Prenups may address other issues as well. It can be customized depending on the terms set by both parties.

It can be used to protect couples from each other’s debts.

Couples can set an agreement on the assets earned during the marriage. These are considered marital property which can be subject to division.

The right to alimony can also be discussed in the agreement whether either party could go after the other for alimony or should it be waived in case of divorce.

Each prenuptial agreement is tailored to the couples terms and assets they agreed to, however, it cannot limit child support. The courts do not let couples bargain away the rights of their children.

Image credits:  Nick Youngson CC BY-SA 3.0 AlphaStock Images