Steps To Take When Creating a Prenuptial Agreement
A prenuptial agreement, or a prenup, is a legal contract that two people sign before marriage. Prenuptial agreements are getting more popular, especially among millennials. Usually, this contract lists all the property each person owns and the debts they owe. It outlines the terms and conditions associated with dividing the property and debts if the marriage dissolves or in the event of death. A prenup can also address alimony, business ownership, inheritance, and other matters. If you are about to get married and are considering a prenuptial agreement, it is vital that you understand what steps to take. The following are some essential steps to take when creating a prenuptial agreement;
- Understand the Purpose
The first vital thing to do is to understand the purpose of a prenuptial agreement. Often, a prenup defines how assets and debts will be divided between spouses in the event of a divorce or death. This helps prevent disputes and lengthy legal battles. This contract can also address alimony, business ownership, inheritance, etc. You need to understand the purpose of your prenup. For example, are you looking to protect pre-existing assets, ensure fairness in the division of future assets, or protect family assets that have been around for many years? Understanding your motivations will help guide the terms of the contract.
- Discuss the Idea With Your Partner
If you are considering creating a prenup, you need to discuss the idea with your partner. Your partner needs to understand your reasons for considering a prenup and what both of you will achieve from it. This might be a challenging conversation, but it is crucial that you have it. Approaching the conversation with openness, respect, and honesty can help build trust, ensure mutual understanding, and create a collaborative approach.
- Identify Your Assets and Liabilities
You and your partner should compile a comprehensive list of your individual assets. This includes real estate, vehicles, savings accounts, valuable assets like collectibles and paintings, and retirement accounts. You should also list down all your liabilities. Being honest about your assets and liabilities is the foundation of your prenup. Therefore, don’t hide any of your assets or liabilities.
- Determine the Terms of Your Prenup
After listing all your assets and liabilities and understanding both your and your partner’s financial situation, it is time to determine the terms of your prenuptial agreement. You and your partner should have a thorough discussion about the terms of your contract, as both of your interests need to be considered.
The following are some common terms addressed in a prenuptial agreement;
- Asset division
- Debt responsibility
- Business interests
- Inheritance
- Alimony/spousal support
- Consult Attorneys
Because a prenup is a legal document, it is advisable that you and your partner consult attorneys. Each one of you should consult a different attorney. A qualified attorney can help you understand legal requirements. They can help you draft the agreement and ensure it complies with state laws and takes your interests into consideration.
Contact a Tampa Family Law Attorney
If you have questions, concerns, or need help drafting a prenuptial agreement, contact a skilled Tampa family law attorney at the Law Office of Laura A. Olson, P.A.
Source:
cnbc.com/2018/07/02/more-millennials-sign-prenups-before-marriage.html
