A premarital agreement, also called a prenuptial agreement, is a legal agreement utilized to define the rights of each spouse to the assets and finances possessed in collaboration before the marriage takes place. This is a form of precaution, in case the marriage culminates in divorce.
Functions of a Prenuptial Agreement
- Protection of each party’s wealth and assets
- Protection of each party from accountability for the other spouse’s debts
- Distinction of property distribution terms upon death of either spouse
- Clarification of fiscal privileges and duties of each spouse while the marriage sustains
- Avoidance of time-consuming and expensive conflicts in court in the event of a divorce
Laws Governing Your Assets and Debts – Without a Prenup
For couples who decide to opt out of a prenuptial agreement pre-marriage, the state has defined a body of laws. These define the terms for property handling during and post marriage. In the majority of states, the spouse has rights to:
- Sharing and acquiring ownership to property obtained during the course of the marriage
- Receiving a proportion of the property upon other spouse’s death
- Sharing all debts obtained during the course of the marriage
- Sharing duties in management of property obtained during the marriage
Some individuals may not wish to follow the state laws. Premarital agreements have an advantageous edge over here, as they can be tailored to suit the individual’s requirements.
The Stigma Associated with Prenups
Premarital agreements were highly disfavored by judicial judges in the past. This is mainly due to the manipulation of this agreement to provide protection to the richer spouse from a financially weaker spouse. This kind of agreement was seen as encouragement to suspension of marriages before they took place.
Validity of a Prenuptial Agreement
The current society, however, accepts prenuptial contracts. Furthermore, female partners are provided more rights and exposure, equivalent to their male counterparts. Thus, they require fewer defenses in court. Therefore, the majority of prenuptial agreements are considered acceptable and valid. However, prenuptial agreements are still scrutinized with a careful eye in court. Therefore, any prenuptial agreement drawn up should be comprehensible, logical, and explainable. The agreement will be nullified if the judge considers it inequitable to either party involved.
Any couple contemplating wedlock and marriage should consult with an attorney to ensure their assets are protected both during and after the marriage. Any prenup agreement prepared personally by the couple concerned must be revised by a lawyer, to provide advice regarding their responsibilities and duties in compliance with state laws. The lawyer will provide professional comment on the agreement of the prenup agreement with state laws.
