If the marriage fails, be prepared with a solid prenuptial agreement.
When you wreck your car, you call the auto insurance company. Get sick? Whip out your medical insurance card. House fire? Check your homeowner's policy.Get divorced? You're in goods hands for most of life's crisis. Be prepared for marital breakups too.
A prenuptial agreement is a contract entered into before marriage or a civil union. It includes provisions for asset distribution and spousal support in case of a divorce or dissolution of the civil partnership.
Good Business Sense
Marriage is part love and commitment, part business arrangement. At least half of the decisions a couple makes are based on some aspect of finances. Instead of seeing the prenup as a threat, each partner should consider it an insurance policy. Together you decide who gets what and how much. Avoid having your assets end up with people who you don't want to have them (ex: your spouse's kids from a former union, rather than your own).
When couples can't agree on divorce settlements, the state will often decide for them. In states with community property laws, this means assets are split 50/50. With 1 out of 3 first marriages ending in divorce, and, 50% of second and third unions doing the same, a prenuptial agreement is smart planning.
Each couple's prenuptial agreement will differ depending on their assets and circumstances. However, there are basic guidelines to follow ensure your contract will be valid and withstand legal challenges in court.
1.Get a Lawyer
Each partner should hire his own attorney. Don't just bring a trusted friend to the proceedings. The prenup is a legal contract that requires the services of a qualified lawyer who understands marital contracts and is familiar with the laws in your state. The person who proposed the subject of a prenuptial agreement often pays the legal fees of both attorneys.
A mediator is a less expensive option for drawing up a prenuptial agreement. Once the agreement is prepared, each partner should have his/her attorney review the final draft to check for problems.
2. Sign Early
Legal experts advise couples to sign a prenuptial agreement at least 6 months before the wedding. Contracts signed at the last minute risk appearing as if one party was forced to sign under coercion or duress and could be thrown out in court.
3.Full Disclosure
Each party must fully disclose all of his assets. If one partner discovers the secret stock portfolio or vacation property of the other, she could successfully challenge the agreement as courts frown upon such deception.
4. Look Out for Number One
Don't sign an agreement that will provide you with less than you'd normally get in a divorce settlement. Take into consideration any sacrifice of earning potential, i.e., time off to rear kids; support of spouse while he attends medical school. Don't get caught up in the small stuff; identify important or nonnegotiable assets worth fighting for. The prenuptial agreement should be fair and leave neither party destitute after the divorce dust settles.
5.Beware the Draconian Prenup
If one partner is adamant about signing an ironclad contract, a sunset clause should be included in the agreement. This provision staggers the terms of the deal or specifies a time the agreement would expire (ex: after 10 years). Children, financial ups or downs, and other life changes make it beneficial to have the option to review a prenuptial agreement.
6.Keep it Legit
Don't be a Steven Spielberg. His prenup written on a paper napkin didn't impress the court who awarded his ex Amy Irving $100 million - half of his earnings at the time of their divorce. Use the proper legal paperwork, and, sign and have the agreement witnessed by a lawyer.
Keep so-called celebrity caveats to a minimum. Provisions about limiting a spouse's weight gain or football watching, infidelity, and who gets the cook or gardener may not be enforceable in court and could end up invalidating the entire contract. Also, remember that you cannot waive child support responsibilities in a prenuptial agreement.
Sidebar 1
Prenuptial Agreements have been around in some form for ages. Royal families in Europe and Asia have always had formal agreements to protect their wealth in the event of marital discord.
Sidebar 2
18th century shopkeeper Elizabeth Murray experienced the lack of legal and financial autonomy in her first marriage. She signed prenups in her next two marriages, guranteeeing her rights over personal property and her late husband's assets that were denied most women in that era.
Author: B.A.Rice
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According to Wikipedia
A wedding is a civil or religious ceremony which celebrates the beginning of a marriage. Wedding traditions and customs vary greatly between cultures, ethnic groups, religions, countries, and social classes. In some countries, cultures and religions, the actual act of marriage begins during the wedding ceremony. In others, the legal act of marriage occurs at the time of signing a marriage license or other legal document, and the wedding is then an opportunity to perform a traditional ceremony and celebrate with friends and family.
“Prenuptial Agreements: Historically, judges in the United States frowned upon prenuptial agreements as corrupting what marriage was supposed to stand for, and often they would not recognize them. Nowadays they are recognized, although they may not always be enforced. It is common to have legal advice to the effect that both parties should have lawyers present during the signing, for a judge to ensure that neither party has been coerced into the agreement. Prenuptial agreements are, at best, a partial solution to obviating some of the risks of marital property disputes in times of divorce. They are not the final word."
As defined by Encarta, a prenuptial agreement is “financial agreement before marriage: an agreement made between a couple before marriage relating to the arrangement of financial matters and division of property in the event of their divorce".
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