Simply put, a prenuptial agreement (also known as a prenuptial contract or supply contract) is a contract that a couple signs before marriage to know their finances in the event of divorce. „Marriage contracts govern how a couple divides their finances, what assets each party separate from each party are (that`s how they get married), and how they would divide their home,“ Schpoont explains. „It can describe how they would divide marital property, including marital debt — so what they have, but also what they owe — and it can also indicate how long a spouse or children can stay in a matrimonial home during a divorce.“ Here are some other things you need to understand about prenuptial agreements: For example, a prenuptial agreement may make it clear that there is a joint bank account used by both partners to spend joint expenses, savings, and investments, while each party may want to keep some of their respective income for themselves to spend at will. In this way, not only will there be less conflict about how and why a spouse spends their money, but each party will have financial autonomy during the marriage to spend some of their own money at will, while the common goals of the marriage will be achieved through the joint account. „At first, my marriage contract seemed one-sided — my husband Ted is divorced and has children from previous marriages,“ says Californian Dr. Karina von Middendorf, who married herself for the first time last November. „Setting up our prenup was a months-long process that involved disagreements and back and forth. But in the end, it was helpful to go through the process as it clarified what our marriage and financial future would look like. „Nothing is guaranteed, not even your marriage. If your marriage ends one day, a prenuptial agreement can save you a lot of money, frustration, and stress.
We`ve all heard the horror stories of couples fighting for divorce in court, paying endless legal fees and legal fees, and dragging out the process for years. With a signed and valid prenup in your pocket, you can quickly and easily divide your assets and move on. For example, if you are only concerned with protecting your property before marriage, you can limit your prenuptial agreement to this one issue. If you are only concerned about the disposition of your separate real estate in the event of death, you can limit your prenuptial agreement to this problem. You will still need a will and/or trust, but your prenup may waive other legal rights for your spouse upon your death. A 2019 Love & Money survey by TD Bank found that 27% of millennials currently keep a financial secret from their partner, which represents significant credit card debt. „Debts before marriage are usually paid by the person who contracted them. However, debts incurred during marriage can often be transferred to both spouses, which puts the non-debtor spouse at a disadvantage,“ Brenner explains. If one party is used to spending money and the other party doesn`t want to be responsible for debts incurred during the marriage, a prenuptial agreement can help prevent that from happening, Roxas adds. It is important to choose an appropriate time and place for these conversations. „Not while your partner is under a long period of labor or when their family member is sick in the hospital,“ Kimeldorf notes.
Entering into a marriage contract is a very personal decision, and each couple is unique. For example, a spouse wants to protect their family business in the event of a divorce, or maybe a wealthy person wants to protect their assets. In any case, there is no one-size-fits-all solution for all couples and you should base your decision on your own unique circumstances. The right to privacy is recognized in marriage contracts. „The parties may agree that no other natural or legal person will disclose, intentionally publish, or provide information or materials without the prior written consent of the other party,“ Roxas explains. There are often confidentiality clauses in prenuptial agreements to avoid exposure to social media and revealing books, for example. „Parties can also enter into contracts to negotiate any dispute through arbitration and thus keep them out of public view,“ Lindsey says. A prenup, also known as a prenup, is a written contract in which a engaged couple sets out their rights and obligations with respect to prenupial and matrimonial property and debts, and what would happen if their marriage ended in divorce or death.
„Most states believe there are concerns about child custody and support, and courts are not required to apply a provision in a prenuptial agreement that seeks to cover these issues,“ Lindsey says. „The courts must rule on the best interests of the child at the time of divorce. Therefore, as it could nullify an agreement to take these provisions into account in the marriage contract, most practitioners do not include alimony and child custody in the prenups. In fact, some states will remove all child support provisions if the marriage contract tries to solve the problem. „If you own a business before marriage, a prenuptial agreement may make sense because a divorce can destroy a family business. If you own a business with other people, your share of the business can also affect your divorce. A prenuptial agreement may allow the party to decide at its own discretion how to conduct its business now and in the future. „If one of the spouses started a business before the marriage, that spouse may want to prevent the other spouse from acquiring a stake in the business during the marriage,“ Schneider explains. „Forensic accounting issues arise when a business gains value during marriage and a spouse wants a share of that increase in business. A prenup can quantify what that interest is, or it can allow the owning spouse to own the business directly, regardless of the contributions that were made during the marriage. „Some couples meet and get married quickly, so a prenup is good if you don`t know each other so well. Other couples do not want to talk about it when planning their marriage and instead sign a post-marital contract after the marriage is legalized.
(You can still get a postnup after marriage or make changes to your prenup after marriage that can turn it into a postnup, Wallack notes). Many partners are uncomfortable reaching out to prenups for fear that they will harm their relationship or offend their future spouse. „However, for a successful marriage, it is important that couples are able to communicate well, even when it comes to unpleasant subjects. If they can have that conversation and have it in a healthy way, it says a lot about what they can handle in the future,“ says Marcia Kimeldorf, Ph.D., a psychologist and director of clinical services at the Center for Anxiety in New York City. Marriage contracts often come into play when there is a difference in assets between the two parties. „A person who marries in money can have a significantly improved lifestyle that can create rights to spousal support and division of property on the street without a prenuptial agreement,“ Lindsey says. „Some believe that a prenuptial agreement ensures that the parties do not marry for money.“ Finally, when proposing a prenup, remember that the goal is not to have the same points of view, but to arrive at a place of understanding, empathy and agreement on how differences are approached. „Some couples in cases of premarital conflict may benefit from discussing these issues during therapy sessions,“ Schneider adds.
When things don`t work, prenups relieve the pain of divorce. In divorce agreements, assets and liabilities are divided. If one of you has school debt or plans to take on student debt during the marriage, the marriage specifies who is responsible for repaying that debt. While it can be uncomfortable to talk about these topics before marriage, it`s important to think about all the scenarios now – if you`re in love and reasonable, rather than when you`re controversial. For example, your partner may insist that if they stay home and raise the children, your prenuptial agreement will include provisions to compensate them for this career break through spousal support. .