A prenuptial agreement (or often simply referred to as a prenup) is a written agreement that is drawn up between two parties before they get married. Every prenup is different, but the general goal is to protect certain assets and property should the couple ever divorce. The agreement will list who owns which assets, and how they will be divided if the marriage ends.
Maybe you want to bring up the subject of prenuptial agreements to your fiancée, but you don’t want him or her to take it the wrong way. Or maybe your fiancée was the one who brought the topic up, and you’d like to know more about what a prenuptial agreement entails. While it may not be something that all married couples have, for some, this written agreement is very important. Here are some things that you and your fiancée should know about prenuptial agreements.
Be prepared for full disclosure
When a prenuptial agreement is drawn up, both parties will need to fully disclose their assets and debts, and this information is included in the agreement.
They aren’t just for the wealthy
It’s a common misconception that prenuptial agreements are only for wealthy people, but this isn’t the case. Couples on all financial levels can benefit from prenups, and even what you view as a minor asset may be still worth protecting with a written premarital agreement.
You’ll need to find out the laws in your state
Talk to your lawyer and find out what the state laws are should you and your partner divorce. In some states, all marital property and assets are equally divided amongst both parties, so if this is all you were hoping to accomplish with a prenup, it may not be necessary.
You shouldn’t wait until the last minute
Prenuptial agreements that are drawn up right before the wedding are harder to enforce, and springing this on your partner at the last minute might not be the best idea. Do it as soon as you can; financial experts recommend that you draw up a prenup at least six months prior to tying the knot.
You will need to hire an attorney
If you are insistent about drawing up your own prenup, that may be fine—but it’s important to hire an attorney to at least go over it to make sure everything is correct and that legal procedures are followed properly.
The agreement should include clauses and terms based on specific circumstances
No single prenup will ever be the exact same as another, so bear this in mind. If there are certain clauses and terms you’d like to include in your own prenup, make sure you do so. Include your spouse in the process, however, so that you two can come to an agreement on these terms together.
They’re meant to be fair to both parties
Don’t expect a prenuptial agreement to be valid if it completely favors one spouse over the other.
It may need updating
As the name suggestions, prenuptial means that the agreement is drawn up and signed before the nuptials. But this doesn’t mean that the prenup won’t need to be revised every few years or so; it’s important to update it as needed.
At Peachtree Financial Solutions, we understand that sometimes a major life event (such as a divorce) can be difficult financially. If you’re receiving annuity payments, but you need your money now, ask us about how you can receive cash for payments from your annuities. With our annuity purchase options, you can sell some or all of your future annuity payments and receive that money now. Contact Peachtree Financial Solutions today if you’d like to learn more about receiving cash for annuities.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.