As prenuptial agreements become more common, the law is becoming friendlier toward them. Traditionally, courts scrutinized prenups with a suspicious eye, because they almost always involved a waiver of legal and financial benefits by a less wealthy spouse and they were thought to encourage breakups.
As divorce and remarriage have become more prevalent, and with more equality between the sexes, courts and legislatures are increasingly willing to uphold premarital agreements. Today, every state permits them, although a prenup that is judged unfair or otherwise fails to meet state requirements will still be set aside.
However, because courts still look carefully at prenups, it is important that you negotiate and write up your agreement in a way that is clear, understandable, and legally sound.
If you draft your own agreement, which we recommend, you'll want to have separate lawyers review it and at least briefly advise you about it -- otherwise a court is much more likely to question its validity.
Stoner and Shae Irving, shows you how to create a draft agreement yourselves, to bring to separate lawyers for review. The book can also be useful for same-sex couples in California, where domestic partnership gives partners many of the rights and responsibilities of marriage, and pre-partnership agreements serve the same purpose as a prenup.
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This is a provision in the agreement that stipulates a preset termination of the prenup after a fixed period. For example, you can set the prenuptial agreement to last for 5 years before it automatically expires. If there is no sunset clause or specific stipulation regarding how long a prenup should last, its lifespan is indefinite. Both sides may wish for their prenup to end after a certain number of years or want the prenup to last indefinitely.
The choice is completely personal and unique to each couple. Prenuptial agreements are becoming more popular with couples. While no one marries and then plans for divorce, prenups are a common-sense tool. Prenuptial agreements may strengthen the foundation of the marriage and encourage open, honest communication about the expectations of the relationship.
There are a number of things that can be included within a prenup. While Justin and Hailey may be young and in love — and throwing all caution to the wind — no one with any substantial assets should follow their lead. Here are 10 things every person should know about prenuptial agreements. Thankfully for Justin and Hailey, it is not too late to get the benefits of a prenuptial agreement.
Depending on state law, they may be able to enter into a postnuptial agreement, which is signed after the marriage. The basic components of a postnuptial are the same as a prenuptial, although postnuptial agreements may be harder to enforce depending on the state, and some states require consideration. Consideration is something of value that one party gives to the other to induce him or her to sign the agreement.
Divorce and Your Children. Divorce and Retirement. Post-Divorce Finances. Legal Terminology A-E. Legal Terminology F-Z. Table of Contents Expand. What Is a Prenup? What Is a Postnup? Who Needs a Prenup? Who Needs a Postnup? The Bottom Line.
Key Takeaways Prenuptial before marriage and postnuptial after marriage agreements spell out how a couple will divide their assets if their marriage dissolves. Prenups are important when one member of a couple has significant assets, a large estate, children from a previous marriage, or expectations to receive a large inheritance or distribution from a family trust.
It can be helpful to use an attorney to draw up one of these agreements, as tax law can complicate the financial picture. Article Sources. Investopedia requires writers to use primary sources to support their work.
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