Premarital Agreements

Premarital agreements protect couples in case of divorce.

Premarital agreements, also known as prenuptial agreements, antenuptial agreements, or "prenups," are created before a couple enters into marriage for the purpose of protecting the property and assets of each if the marriage results in divorce. Either an attorney or the couples themselves can create premarital agreements. If the marriage between the couple never takes place, the premarital agreement becomes void.

Purpose

The purpose of a premarital agreement is to ensure that, in case of divorce, the property owned by one spouse before the marriage remains their property after the marriage comes to an end. Any property obtained during the marriage may be split, either based upon an agreement reached by the divorcing couple, or a court of law. Premarital agreements also address debt. If a person has debt before getting married, the debt shall remain his own after the marriage is terminated.

Creating The Agreement

An attorney can help create a premarital agreement.

Neither state nor federal laws require couples entering into a marriage to create a premarital agreement. If a couple decides to create a premarital agreement, they can either do it themselves or hire an attorney to create one for them. In some cases, both parties will hire their own attorney for this process. Attorneys will often times charge a fee for creating a premarital agreement. If a couple chooses to create one on their own, it shall be as legally binding as one created by an attorney if properly done.

Making It Legal

Both parties must sign the premarital agreement.

For a premarital agreement to be legal, it must be in writing, and both the husband and wife to be must sign it. Both parties must be of "sound mind" and not under pressure or duress to sign it from an outside party. When creating a premarital agreement, both parties must inform each other of all assets and property they own, as well as their current financial situation. If one of the two doesn't fully disclose property or assets owned to the other before the marriage, those items may be viewed as community items in a court of law during the divorce proceedings.

Limitations

Although premarital agreements can protect both spouses in case of divorce, not all elements of the agreement may be enforced in a court of law. For example, any legal duties regarding child support cannot be altered within a premarital agreement. If the agreement leaves one of the spouses in a dire financial situation, the court may deem it unconscionable and therefore void. However, while some aspects of an agreement may become void, that doesn't mean that the entire agreement becomes void.

Sunset Clause

Married couples have the option to alter premarital agreements.

Some premarital agreements may contain what is known as a "sunset clause," or an expiration date on the agreement itself. In this case, both parties must agree on the time limit of the sunset clause. For example, a premarital agreement may state that, after 10 years of marriage, the agreement itself becomes void. Couples also have the right to alter the conditions of a premarital agreement after they get married. Again, both parties must agree to the changes made.

References

• Premarital Agreements: Premarital Agreements
• Bank Rate: Everything You Need To Know About Prenuptial Agreements
• Family: Can Prenuptial Agreements Help You?
• Legal Match: How Can I Fight The Enforcement Of A Prenuptial Agreement?
• Divorce Mag: A Satisfying Agreement

Resources

• Main Street: Top Ten Most Famous Sports Star Divorces
• NY Daily News: Most Expensive Celebrity Divorces