Information About Prenupital Agreements

Creating a prenuptial agreement may prevent heartbreak down the road.

The words "prenuptial agreement" are enough to send many running for the hills. While it's a popular belief that prenuptial agreements are only for the rich, in reality they're a source of protection for a large majority of the population.

Validity

According to Linda Andretta, an attorney in Washington D.C., there are five elements that are required for a valid prenuptial agreement. The prenuptial agreement must: be in writing, be executed voluntarily, be fair at the time of execution, not be unconscionable, be executed by both parties.

Who Needs a Prenuptial Agreement

It's not just the rich who should consider getting a prenuptial agreement; anyone with significant assets or unusual family situations may want to create a document to eliminate confusion in the event of divorce or death. Property ownership, children, inheritance, future income, and any other issues dealing with assets should be taken into account, when deciding whether or not to create a prenuptial agreement.

Timing

Experts suggest signing a prenuptial agreement at least one month prior to the wedding.

Expert financial adviser and author Nancy Dunnan suggests signing a prenuptial agreement "at least one month prior to the wedding and preferably before the invitations have been sent out." Postnuptial agreements are also possible, but are less common.

Lawyers

Each state has their own laws regarding prenuptial agreements. When looking for a lawyer for your prenuptial agreement, make sure to use one who specializes in marital law in your state.

Benefits

A prenuptial agreement ensures that you decide the devision of your assets, not a judge.

In the event of death or divorce, a prenuptial agreement ensures that you and your spouse made the decisions about your assets. Without a prenuptial agreement, your assets may be divided based on the decision of a judge. However, a prenuptial agreement does not replace a will or trust, and it is prudent to consider making these, too.

References

• Andretta Dispute Resolution: Prenuptial Agreement Overview
• Prenuptial Agreements: The Basics