There are a variety of misunderstandings associated with prenuptial agreements, the benefits of prenuptial agreements, and what they do. Prenuptial agreements can be useful not just for the wealthy. Prenuptial agreements allow couples planning to marry to outline property rights and other considerations prior to their marriage. Couples entering a marriage may rightfully have a variety of concerns prenuptial agreements can address.
While prenuptial agreements can, indeed, protect the assets of one or both spouses, they can also serve a variety of other important uses including protecting one party from the debts of the other; clarifying financial rights and responsibilities during the marriage; determining how property will be passed in the event of death, and helping avoid long and expensive disputes in divorce circumstances. In situations when the couple does not have a prenuptial agreement, state law will control the division of property if the couple divorces.
There are several important requirements that must necessarily be met for a prenuptial agreement to be considered valid. Though they may vary some by state, requirements for a valid prenuptial agreement generally include that the financial circumstances of both parties were fully and fairly disclosed; that the parties each had the opportunity for a personal representative to review the prenuptial agreement before signing; and that the parties had adequate time to review the prenuptial agreement prior to entering the marriage. In addition, both parties must sign the prenuptial agreement voluntarily and additional requirements may also be required based on the jurisdiction.
Misconceptions concerning prenuptial agreements may prevent couples entering a marriage from considering one. Because of the helpful uses of a prenuptial agreement, it is important that couples entering a marriage are fully aware of how a prenuptial agreement may be a benefit to them.
Source: Family.findlaw.com, “Can Prenuptial Agreements Help You?” Accessed May 18, 2017