Details of a Prenup

Basically, a prenuptial agreement is a contract between spouses that allows them to plan for their financial future together. Prior to marriage, both prospective spouses sign the prenuptial agreement and it becomes effective at the time of marriage. Typically, a prenuptial agreement sets forth all the property and debts of each party and specifies what each spouse’s property rights will be after (or during) the marriage.

You and your spouse have tremendous flexibility in determining the objectives and complexity of your prenuptial agreement. In order to be enforceable by courts, however, a prenuptial agreement must be “fair and reasonable.” Courts analyze if a prenup is “fair and reasonable” at the time of its signing, not at the time of death, divorce or separation.

Therefore, as long as a prenuptial agreement is “fair and reasonable” it may cover many situations, such as:

•    Deciding how property will be divided upon death, separation, divorce, and/or the occurrence of a certain event (such as alcohol consumption by a party).
•    Protecting spouses from each other’s prior debts.
•    Waiving or modifying spousal support and alimony.
•    Determining what property will pass to children from prior marriages.
•    Determining who will keep the primary residence, vacation homes, etc.

These are just a few prenuptial agreement basics, however prenups can be much more complex and detailed. In addition, it is not uncommon to have a prenup that terminates after a predetermined period of time (such as after eight years of marriage).
The basic prenuptial agreement process begins with a discussion between you and your spouse regarding your marital financial goals. After such a discussion, you may want to consult with a lawyer to draft your agreement. Once your agreement is drafted, it must be presented to your spouse for review and signature. Depending on the provisions in the agreement and applicable state law, your spouse may need to hire an independent lawyer and sign the prenup several days before your wedding.

Contact Red Leaf Law today for a free initial consultation and one of our attorneys will further discuss prenuptial agreement basics with you.