Prenuptial Agreement
Prenuptial agreements are most commonly used to prearrange
financial matters and protect future inheritances. Allow at least three months before the
wedding to work out the details. A valid prenuptial agreement generally involves lawyers and
full financial disclosure.
Most prenuptial agreements provide that whatever property or debts
you bring to the marriage will remain yours if the marriage dissolves. They protect what you
do not have yet, including property you expect to inherit. They can be used to specify rights
and privileges within a marriage, or they can provide for the division of property and custody
of children if a couple divorces. Generally, states will not allow you to waive child support,
dictate child custody or otherwise impinge on the rights of your children.
Do you need a prenuptial agreement? Probably not, if you are both young,
have not accumulated any real assets and are not likely to inherit a sizeable
amount of money or property. In this case, the laws of your state which
establish how property is divided in marriage may fit your needs and no
other contract would ever be needed.
If, however, you are coming into marriage with considerable assets,
including, for example, stocks, real estate, other investments, vehicles,
jewelry, art or anticipate an inheritance, you should consider a prenuptial
agreement, regardless of your age or previous marital status. You may also
want a prenuptial agreement if you own a business.
Consider the following steps in preparing a prenuptial agreement:
- Talk to each other about what you want to include, for example, assets,
support for children from a previous marriage and inheritances.
- Decide what agreements
you might want to make with each other.
- Consult an attorney knowledgeable
about family law for advice.
- Incorporate your agreements into a written
contract prepared by your attorneys.
- In the contract, you may want to specify a date or timeframe
for reviewing and, if needed, revising the agreement every 2 to 5 years,
for example.
- Make sure
you both believe the agreements are fair and equitable before you sign
anything.
Postnuptial Agreement
You may also accomplish the same goals by making a postmarital agreement, a similar legal document
created after you marry, but these agreements are less common than those made before marriage.
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Basic Money Management
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