Prenup Faqs

What is a prenuptial agreement?

Simply put, a prenuptial agreement is a contract between two individuals, allowing them to plan for their financial future together. The Uniform Premarital Agreement Act defines a prenuptial agreement as “an agreement between prospective spouses made in contemplation of marriage and to be effective upon marriage.” A prenup is drafted and signed by both prospective spouses prior to their marriage, and upon marriage the agreement becomes enforceable.
Another frequently asked question is pertains to the benefits of a prenuptial agreement.

So, what exactly are the benefits of getting a prenuptial agreement?

Entering into a prenuptial agreement allows couples to take control of their marital goals and can be an extremely useful estate planning tool. In addition, drafting a prenuptial agreement can stimulate invaluable conversation among couples that helps them identify long-term goals. A few major benefits of a prenuptial agreement is that they:

•    Support your estate plan.
•    Decide for the future of your assets.
•    Allow you to define what property is considered marital or community property.
•    Establish procedures for deciding future matters (such as how to pay for your loved ones’ retirement home costs).
•    Reduce conflicts and save expenses if you divorce.
•    Clarify special agreements between you and your spouse (such as paying for your spouse’s graduate school tuition).

Aren’t prenuptial agreements only a mechanism to protect the wealthy spouse’s assets?

This may be one the most frequently asked questions about prenuptial agreements. Although it is true that prenups can prevent one spouse from acquiring the other spouse’s assets, a prenuptial agreement must be “fair and reasonable” to be enforceable. At the end of day, both parties must sign the prenup—and in some cases retain separate legal counsel to review the agreement—for it to be valid and enforceable. If the agreement is one-sided then the compromised spouse has the right to refuse to sign it or modify it until an accord can be reached.

Contact Red Leaf Law today for a free initial consultation, and one of our lawyers will answer any additional prenuptial agreement questions you may have.