4 Things To Consider Before Signing A Prenuptial Agreement
Prenuptial agreement is essentially a contract signed by two individuals who are about to enter into a marriage. The purpose of the prenuptial agreement is to protect either individual’s assets in case the marriage fails and a divorce is required. prenuptial agreements are not exactly a welcome concept in the society but the agreement will be instrumental in resolving any disputes over division of assets during a divorce litigation. The Court often follows the terms mentioned in the prenuptial agreement while making the final judgement.
Prenuptial agreements need to be explicit in their terms. The purpose of the agreement is to avoid unwanted disputes and a well drafted agreement is necessary. There are a few things to keep in mind when signing a prenuptial agreement.
Review the document
Like any legal document, it is mandatory that the parties signing the agreement get it reviewed by their respective attorneys to avoid any misunderstandings. Either party is required to be forthcoming with all their assets else, the agreement will end becoming void in the court. The agreement should be signed before the wedding takes place.
Most couples who are about to sign a prenuptial agreement often do not take it much seriously and get it reviewed by a friend or relative practicing law. prenuptial agreements are no joke and it is important to hire an attorney who is well versed in existing state laws and can draft a proper agreement.
What a prenuptial agreement does not resolve
Prenuptial agreements are mainly concerned with the division of assets. They do not resolve:
- Issues that are non-financial such as division of any important chores.
- Child related issues such as disputes over child support, child custody, and so on.
Disclosing your assets and liabilities
All your assets including stocks, funds, bank statements, inheritances, and liabilities like credit cards, loans, mortgages, and so on must be disclosed in the agreement. In case of a divorce, the Court will consider the agreement invalid if any hidden assets are discovered. Make a meticulous list of all your assets and liabilities to avoid nullification of the agreement.
Discussing division of property
Both the individuals entering into marriage must discuss the division of their assets. They must rule out which assets were owned individually before marriage and which assets will be considered marital property, meaning both parties will have ownership of the assets equally or as decided by the individuals.
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