A premarital agreement is an essential aspect of modern marriages. It can help avert marital issues that may jeopardize your financial matters or interests. This blog post breaks down the importance of a premarital agreement and why you should create one.
Prenuptial agreements are lawfully binding agreements created by two parties about to get married. Normally a premarital agreement constitutes properties individuals have, their finance including debts, and how their own separate and joint properties will be shared during the marriage, death, and when divorce arises.
Why do you need a Prenuptial Agreement?
You may assume that a free prenuptial agreement which some refer to as a prenup, is only for wealthy people. That’s not true. Anyone who cares about their financial well-being can benefit from a prenuptial agreement. It’s essential to draft yours properly. If it’s your first time, you may want to refer to a prenuptial agreement template. Here are some of the reasons why you need a premarital contract.
Transfer assets to your children from a previous marriage
Couples who have obtained children from previous relationships may use premarital agreement to guide what will come about if they pass away to ensure a smooth transfer of separate property. This will enable the children to get the rightful share of the properties without conflict from the remaining spouse. In addition, your prenuptial agreement will eliminate favoritism during the division of properties among the children from previous and current marriages.
Sheds light on your financial obligations
Whether you are rich or not, and have children, you and your spouse may need to provide a fair and reasonable disclosure of your property, including responsibilities between the two of you. Prenuptial agreements bring about some level of transparency, enabling you to act accordingly when you decide to go separate ways.
Prevents disagreements during a divorce
Many arguments about different things involving marital property may arise during divorce proceedings. Normally disagreements that arise include division of marital and separate property and whether or not a partner receives financial support ordered by the court following their divorce as maintenance. A prenuptial agreement voluntarily entered with legal counsel will be helpful.
Protects you from debts
A premarital agreement enables couples to state their financial status, including debts, when coming in and during the marriage. This will allow you to get cover from your spouse’s debts after divorce or even after death. In addition, this will enable them to have financial freedom and peace of mind.
Eliminates similar experiences
Going through a divorce can be a harrowing experience, especially if you have to split assets or property. If you have gone through an unpleasant divorce experience in the past, a prenup agreement may help you prevent a repeat of financial blunders and painful emotional experiences.
Peace of mind
One of the main reasons you need to enter into a premarital agreement before marriage is the security it brings. You will feel secure knowing your situation won’t change much should your break up or die. Divorce proceedings are usually stressful and sometimes chaotic. Without a premarital agreement, making sound individual and monetary decisions can be difficult. A prenup agreement will remove doubts from court decisions and ensure that all decisions you and your partner are upheld.
How to write a prenuptial agreement
Creating your prenuptial agreement is a lot easier than you think. Follow these simple steps to make your agreement:
1. Collect all vital financial information: The aim of gathering all documents is to ensure you and your spouse has disclosed all of your finances. Full disclosure will create transparency, and it will be in your best interests before entering into a prenuptial agreement.
2. Disclose the identity of your lawyers: Parties involved should provide the names of their legal presentations before agreeing.
3. Disclose your previous marital status: You need to state and include your premarital status in the agreement. For example, whether there are children present from the previous relationship.
Before final reviewing the prenuptial agreements, seek independent legal advice from a family lawyer who understands the uniform premarital agreement act and its implications on your case. Know when and how prenuptial agreements should be enforced under state laws too.
What to include in a prenuptial agreement
Besides your assets, you need to have a couple of things in the agreement. These include:
Business alliances: Add your business partnerships in your premarital agreement so that they can be autonomous. Once you get married, your partner is entitled to half of the spouse’s property and any monetary gain from your business alliances in case you get divorced.
Insurance and pension plans: Including your retirement accounts and plans in your agreement enables you and your partner to plan how to counterbalance payments. Retirement benefits typically go to the surviving spouse upon demise even though you were divorced.
Presents and family inheritance: You need to include presents and family inheritance obtained in your premarital agreements. This gives you the freedom to choose who will get the ownership of them in case of a divorce or death. According to matrimonial law, presents given to a spouse are marital property.
Limitations in a prenuptial agreement
Some things cannot be addressed in a premarital agreement, including:
Child support: All child support issues are dealt with under Connecticut law. There are guidelines on how child custody and support should be handled, and the inclusion of child support in the entire agreement will undermine that.
Partner support: Keep in mind that prenuptial agreements do not eradicate spousal support, and if it is limited, the partner will be permitted to get help from the state law.
Looking for a family law attorney to create a premarital agreement? Contact our family law firm
When the time comes to make a prenuptial agreement, Contact CT Mediation Centre for help. Our attorneys in Connecticut will provide legal advice and legal services and guide you through the process. Call (860-986-1141) to schedule a free consultation with our family lawyer today.