A prenuptial agreement, or prenup, is a legally binding document that outlines the financial rights and responsibilities of both parties in the event of a divorce or separation. It’s an important step to take before getting married, especially if one or both partners have substantial assets, debts, or business interests.
If you’re considering getting a prenup, here’s a guide on what to include:
1. Full disclosure of assets and debts: Both parties must provide a comprehensive list of their assets and liabilities. This includes real estate, investments, bank accounts, retirement accounts, and any debts such as credit cards, loans, and mortgages.
2. Property and asset division: The prenup should specify how property and assets will be divided in case of a separation or divorce. This includes but not limited to real estate, vehicles, jewelry, and other valuables.
3. Spousal support: In many cases, the prenup will include provisions for spousal support. This determines the amount of support that one spouse needs to pay to the other in case of divorce.
4. Marital property: The prenuptial agreement should clearly identify what property will be considered marital property. Marital property includes assets that are acquired during the marriage, while separate property includes assets acquired before the marriage.
5. Inheritance rights: Prenups should address inheritance rights to ensure that inheritances go to the intended heirs and not to the other spouse in case of a divorce.
6. Business interests: If either party owns a business or has a significant share in a business, the prenup should address how the business interests will be divided in case of separation or divorce.
7. Debts: Prenups can address the responsibility for debts incurred during the marriage. This includes credit card debt, student loans, and other types of debt.
8. Child custody and support: While prenups can’t determine child custody and support, they can outline the financial obligations of each parent to their children.
It’s essential to work with an attorney to draft a prenuptial agreement that is legally binding and meets your specific needs. A well-crafted prenup can protect your assets and provide peace of mind in case of a divorce or separation.