How Do I Know If I Need A Premarital Agreement Or Not?
Premarital agreements, or prenuptial agreements, are becoming increasingly popular for couples. They are legally binding contracts that outline how assets and debts will be divided in the event of a divorce. While premarital agreements can be beneficial for some couples, they are not right for everyone. Knowing when you need a premarital agreement and when you do not is an important part of getting married.
If you are considering a premarital agreement, it is important to review the laws in your state. Some states have laws that can impact how premarital agreements are enforced, so it is important to understand the legal framework before you move forward. The information involving how your state enforces a premarital agreement can be found on the web under your state’s statutes for marriage and divorce.
When Do You Need a Premarital Agreement?
A premarital agreement can be a wise decision if you or your partner have significant assets. A premarital agreement can protect assets that you bring into the marriage, as well as any assets that you acquire during the marriage. This can be especially important if you are entering the marriage with a high net worth or if you plan to acquire significant assets during the marriage.
A premarital agreement can also be beneficial if you want to protect your children’s inheritance. A premarital agreement can ensure that any assets you have that are intended for your children will remain with them in the event of a divorce or death of the birth or adoptive parent.
Another situation in which a premarital agreement might be beneficial is if one partner has a large amount of debt. A premarital agreement can help protect the other partner from being responsible for the other’s debt in the event of a divorce.
When Do You Not Need a Premarital Agreement?
If you and your partner both have similar financial situations, a premarital agreement may not be necessary. In most cases, if you and your partner both have similar incomes and assets and you plan to keep them separate, a premarital agreement may not be necessary. For example, property owned by one party will not be considered a marital asset if kept in only that party’s name after marriage.
In addition, if you and your partner plan to keep all assets separate during the marriage and you are both in agreement on how assets will be divided in the event of a divorce, a premarital agreement may not be necessary. Sometimes, however, disagreements about asset and debt division will occur after the marriage takes place, so a premarital agreement may still be wise if there are a lot of assets and liabilities involved.
Tips for Creating a Premarital Agreement
If you decide that a premarital agreement is right for you, there are some important tips to keep in mind. First, it is important, to be honest about your finances, and a premarital agreement should include full financial disclosure from both partners. A disclosure should be truthful and not hide assets; if discovered later, the premarital agreement will be nullified.
It is also important to make sure that the agreement is fair. A premarital agreement should take into account the contributions that both partners make to the marriage, both financial and otherwise. There must have been no coercion to sign for either party. Should one party not speak or understand English, there must be an appropriate translator at the signing, and enough time should be allowed for understanding and answering questions. If one party is represented by a legal professional, the other party must also have equal legal representation. It is important to have the agreement reviewed by an attorney. An attorney can help make sure that the agreement is legal and that it is fair.
Knowing when a premarital agreement is right for you is an important part of getting married. If you and your partner have significant assets or debts, a premarital agreement can be a wise decision. However, if you and your partner both have similar financial situations, a premarital agreement may not be necessary. It is important to review the laws in your state and make sure that the agreement is fair and legal before you move forward.
If you live in the Florida counties of West Palm, Martin, St. Lucie, Miami-Dade, Broward, Orange, or Hillsborough or New York or Washington DC, Board Certified Family and Marriage attorney Grant Gisondo can represent you. He has over a decade of outstanding service to clients and offers a free, initial, in-office consultation to answer general questions and share how he can help. You can call his office at (561) 530-4568 to make an appointment. Please check out Attorney Gisondo’s website at https://gisondolaw.com to learn more about his law practice, goals, and mission statement.