Prenup Agreement or Prenuptial Agreement is a legal contract which overlooks the emotional aspect of the relationship and takes into account financial safety of the persons intending to marry.
Premarital agreement is made to safeguard you and your spouse from the consequences that may arise from failure of a marriage.
Premarital agreement or prenup agreement may be declared invalid due to the following reasons:
- If premarital agreement is not properly executed
- If any false information is included in the prenuptial agreement
- If any incomplete information is provided in the prenup agreement
- If premarital agreement is made under duress.
Safety Provided by Prenuptial Agreements
- Prenuptial agreement protects each spouse, against the premarital debts incurred, by the other spouse.
- Premarital agreement protects your premarital property and other assets accumulated before marriage.
In absence of a prenuptial agreement, court may decide to divide your assets and debts. Such division may result in a financial loss or bring about some additional debts, which were not actually incurred by you.
Though financial reasons are primary in constituting a premarital agreement, but prenuptial agreements may also cover some other important points as well:
- Prenuptial agreement may cover the provisions of having and raising children.
- Parenting of step children can be included in a prenuptial agreement.
- You can also include agreements regarding issues like child visitation and child custody in a premarital agreement
- Decision of opening joint bank account can also be made a part of your prenup agreement.
Be cautious, you need to consult your lawyer before drafting a premarital agreement. His/her guidance in making a prenup agreement will help you to make the right decisions and include clauses that are according to the laws of state you are residing in.
