How to Write a Prenuptual Agreement
One Seinfeld episode comically presented the prenuptial agreement highlighting one character's attempt to end an engagement without having the courage to actually break off the engagement. It didn't work; she signed the prenup. A prenuptial agreement is a contract drawn up and signed prior to a couple getting married. The contract details how assets will be divided in the event of a divorce or a death. Legally and financially, it is a sound decision to make. Emotionally, as depicted on many television shows, it can be viewed negatively.
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Instructions
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Consider some good reasons to ask your fiancé to sign a prenup. If your net worth is substantially larger than your future spouses'. If your fiancé has a lot of debt, you may not want to take the assets you have worked hard for and be left with less because of the financial mismanagement by your fiancé. If you expect to inherit a considerable inheritance or are a partner in a business, you may want to keep these assets out of a marital agreement.
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Write a list of all the assets you and your future spouse have collected or inherited prior to marriage. These assets include homes, retirement funds, interest in a business, an inheritance or stocks and bonds. Both of you must agree how to disperse these assets that you currently own individually. Having these agreements ahead of time can save you money on attorney fees later.
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Include the proper distribution of these individually owned assets to children and grandchildren of previous marriages for both of you. Many legal battles have raged for decades because of the last-minute spouse who ends up inheriting everything, leaving children and others completely out of the inheritance. The Anna Nicole Smith marriage to oil tycoon J. Howard Marshall is just one example. If you have funds for college tuition for your children or grandchildren, include these in the prenup.
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Include the four key elements that make a prenup valid. Without these elements in writing the prenup, it's possible that a judge will nullify the prenup in the event of death or divorce. First, full disclosure is required. If it is discovered that one spouse has intentionally hidden assets, the prenup will not be valid. Second, each of you should receive independent counsel. One of the reasons that Amy Irving was entitled to half of Steven Spielberg's income during their four-year marriage is that she didn't have an attorney. Third, you must formalize and sign the agreement in writing prior to getting married. One of the other reasons Irving received so much is that the prenup was written on a napkin. Finally, you must be willing to sign the prenuptial agreement.
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Download a sample prenuptial agreement to see how it is worded. In filling out the prenup form, you will see the standard questions of name and address. You must provide a complete list of your individual assets, or separate property and a list of all assets that are considered "shared." You'll also need to provide a list of the individual debts each future spouse has, as well as which ones qualify as shared debts and how shared debts will be handled in case of divorce. Details on children from previous marriages and the claim on parental assets they have are also included. You can find sample prenuptial agreements in the Resources section.
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References
Resources
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