There is a Prenuptial Agreement that needs to be written.
You can't believe that anything could go wrong when you're getting married.Unfortunately, it does often.Much of the argument and litigation that comes with divorce can be avoided by a premarital agreement.When a marriage lasts until death, a prenuptial agreement can help determine how to distribute assets by determining what is and is not the property of the deceased spouse.This article can help you with that.
Step 1: Don't have current assets.
Most states require either full or reasonable disclosure in order for a prenuptial agreement to be valid.A person doesn't have a way of knowing if they are entitled to something.If your spouse learns that you have hidden assets, this could lead to divorce.
Step 2: Future financial plans can be developed.
Future occurrences are what the contract is for.Potential changes in your financial situation should be considered.It is possible to start and maintain a successful business.Higher education will likely lead to higher income.It was anticipated that there would be inheritances to either spouse.With the birth of children, there are plans for one spouse to leave the job market.
Step 3: Provisions for extended family should be discussed.
If there are children from prior marriages, this is important.If there are specific properties that either party wants to pass on to another person, these provisions should be included in the prenuptial agreement.
Step 4: Discuss how property and finances will be dealt with during the marriage.
Unless registered as joint property in a valid prenuptial agreement, property can be separately owned in most community property states.One spouse can waive joint ownership of real property with the other spouse if there is a grossly unbalanced arrangement.
Step 5: If there is a divorce, you should have a plan for the distribution of property.
If something happens between you, you should start considering ways to split it up.This does not have to be a divorce.There could be a reason why you would want to separate your properties during your marriage.Whether one person will receive a cash settlement in lieu of property and how that value will be calculated.
Step 6: Discuss non-financial issues
You do want to discuss non-financial issues in your agreement, even if you don't want them in it.Non-financial issues can affect your financial situation.If a contract is signed, most of these things are not valid.The custody of any children can only be decided based on the best interests of the child at the time the decision is being made.There will be no attempts to contract about this.How household chores will be divided.Discussing them will help avoid unrealistic expectations regarding the ability to hold down meaningful employment and also be primarily responsible for the children and household.The person who leaves the workforce to care for the home will be compensated in a certain way if the marriage fails.Behaviors during the marriage can be encouraged if they are not interpreted to encourage divorce.Bonus payouts to one spouse can be included if the marriage lasts a certain amount of time.
Step 7: The document and the parties need to be identified.
You want to state that the two parties are both willingly entering into the agreement after you title the document "Premarital Agreement".
Step 8: The intent of the marriage should be stated.
The parties are not currently married, but intend to marry.You don't have to include the date of the intended marriage.Unless you want the agreement to be effective on another date, the date of marriage is the effective date.
Step 9: Refer to any special terms used.
Even if your definition conflicts with the way those terms are defined in some statutes, you can still define any terms you want in the document.Income Business Infidelity is one of the terms you may want to define.
Step 10: The assets should be described.
Each party's assets and income should be described.This allows a court to know what you disclosed when making a determination of fair or complete disclosure.You can make addenda of: a list of assets and a financial statement for each party.
Step 11: Discuss how increases or decreases in property or income will be managed in the marriage.
When property is bought or sold, income increases or decreases during the marriage, these things must be considered in the agreement.Property purchased and maintained with earnings or assets of only one spouse may be considered that spouse's property.Property purchased with funds will need to be distributed.If one party uses funds or assets for the benefit of another party and at the expense of the other party, that person can be compensated.
Step 12: Define any rules for the marriage.
It could be a bad idea to join the financial status of the other spouse.You may want to include a statement that one spouse is not responsible for the other spouse's debts.When one spouse has a high amount of debts and the other spouse does not want to accept elderly parents or children from a prior relationship
Step 13: Discuss how property will be distributed at the end of the relationship.
There will likely be assets held in the marriage with separate property going with the owner.There are assets that need to be divided.You should feel free to come up with your own plan.One spouse will often buy the other spouse's interest in the business, or it will be dissolved and the value split.If an asset is encumbered, such as by a loan, responsibility for the liability often goes to the person who is retaining the asset.
Step 14: It's a good idea not to address certain items.
Financial issues are addressed in a prenuptial agreement.There are certain things that can't be addressed in a prenup.A judge will ignore the provision if you address one of these items.A judge may set the entire agreement aside if there are many of them.Child custody Child support, though some states will allow provisions for increased support based on certain events, such as one parent will pay private school tuition if there are children attendingprivate school A court cannot enforce any division of household labor
Step 15: There are reasons that a court may ignore a premarital agreement.
Provisions for child custody are not likely to be ignored by a court, but there are other things that may prompt the court to set aside the entire agreement.A failure of one party to properly disclose assets, an agreement that is so one-sided as to leave one spouse penniless and the other in good financial status, and a lack of opportunity to get legal or other advice are all included.
Step 16: Provide the required information.
To see the level of disclosure required in your state, check the statutes.Statutes can be found on the websites of your legislature, your highest court, and your governor's office.All assets, liabilities and income must be disclosed to the other party.The meaning of fair disclosure varies from state to state.Find out how your state defines fair disclosure by consulting an attorney or search case law.There is a database of case law for all 50 states.Search for "fair disclosure" and "premarital agreement" in your state.
Step 17: Provide enough time for review
If both parties don't have enough time to review the agreement, it's likely to be set aside.Most states only require a reasonable time period that is not clearly defined.One day is not enough.Seven is usually enough under normal circumstances.Seven days may not be considered reasonable if the parties are not in a position to get legal or other advice.
Step 18: They should encourage the other party to get legal advice.
The parties to the agreement should be aware of what they are signing.This means more than just the fact that it is a pre-marital agreement.Both parties should have the chance to have an independent professional review the document and advise them of the benefits and risks of signing it.