A prenuptial agreement is an agreement made by a couple before they marry concerning the ownership of their respective assets should the marriage fail.
It is sometimes called a “prenup”, pre-marital agreement, or an ante-nuptial agreement. Nowadays, prenuptial agreements are more common and it is not unusual for the couple to sign prenuptial agreements before getting married.
So, it is not always a 50-50 separation scenario. In situations where you and your spouse signed a prenuptial agreement prior to getting married, the money and assets you are entitled to when you divorce may differ from the amount you would get if the court were responsible for distributing the marital estate.
In certain circumstances, you can question the legal validity of a prenuptial agreement and you can even request the court to declare the legal validity of the prenuptial agreement.
If successfully overturning a prenuptial agreement, you can increase the amount you receive upon your divorce. However, you must have grounds for contesting the agreement’s validity.
The agreement should be a voluntary action between both spouses. If not, it is possible property may not be protected under the agreement.
Advantages:
Prenuptial agreements give respect to property involved as well as obligations and rights of each spouse. A prenuptial agreement may have provisions that state the owner would only be responsible for costs related to the property.
It may even protect the right to perform transactions related to the property such as the owner having exclusive rights to sell or lease the property.
If the marriage ends in separation, death or another event, a prenuptial agreement may outline information related to the disposition of property. It may outline what jurisdiction legal preceding may take place, how children will be raised and where the couple resides.
A prenuptial agreement can protect your financial stability. This is the reason the majority of people create and sign a prenuptial agreement. This is because without a prenuptial agreement, you and your spouse share assets, property and debts equally regardless of whose name is on the title, registrations or deeds.
A prenuptial agreement reduces conflict. It is a legal contract the courts can enforce.
Debts. Prenuptial agreements can also determine how liability for debts will be distributed between the partners. The agreement can also help protect each party from issues with creditors.
Disadvantages:
Creating a prenuptial agreement implies the fact that you do not see the marriage as “forever”. This can be a real romance killer. The reason behind this is that prenuptial agreements come into play only when a marriage dissolves. By creating one, you indirectly send the message to your other half that there is a real possibility your marriage will fail. Your spouse might even take the prenuptial agreement as evidence you will not fight for the marriage if problems come up.
Establishing a prenuptial agreement can create burdens if circumstances change. A prenuptial agreement is based largely on assumptions founded purely based on current situations.
Signing a prenuptial agreement may necessitate a change in lifestyle.
Issues with ‘trust’. Many feel that even bringing up the idea of a prenuptial agreement indicates a lack of trust. While prenuptial agreement cannot encourage divorce, some feel that the use of prenuptial agreement leaves the couple open to the possibility of separation or divorce.
Prenuptial agreements are subject to the judge’s opinion. Even if you have signed a prenuptial agreement before marriage, but if you take the agreement to the court, it is still up to the judge to decide the validity and reasonableness of every clause.
