How to Evaluate a Prenuptial Agreement

A prenuptial agreement is a premarital contract entered by the two parties involved about the distribution of assets in the event of death or divorce. Known as prenup, this agreement could be a delicate subject. However, it is realistic financial planning. Here are some critical points to remember to evaluate the validity of a prenuptial agreement.

Instructions

Difficulty: Moderately Challenging

1. Hire individual lawyers to draw an executable agreement. This is essential to protect the interests of the parties involved. Choose matrimonial attorneys who are familiar with the laws of the state where you are planning to live.
2. Check the agreement to see if the consenting party has fully disclosed his assets. A judge can deem a contract void if any asset has been partially or completely obscured.
3. Evaluate a prenuptial agreement for duties that do not involve money. An example is which religion the children should be raised if the parties are of different faiths.
4. Ensure that the prenup does not carry frivolous, unrealistic or illegal details such as the spouse taking care of the laundry, never gaining weight and child custody rights. Making sure that the agreement does not mention these items encourages the judge to take you seriously at the time of execution.
5. Assess the prenup for debts incurred by the other party before marriage. If the assets involve shares or ownership in public companies, determine what amount of common property will be utilized by the creditors.
6. Write the agreement well ahead of the actual marriage to get comfortable with the terms and to avoid any pressure in signing the agreement. Make sure the agreement is written on a legal document and witnessed by an independent lawyer while signing.

Tips & Warnings

• If you live in a community property state, discuss with your lawyer about the properties and debts earned and incurred during the marriage. Change the agreement accordingly if the terms are disagreeable for you.