Prenups: What Are They and What Should You Include in Yours?

The marriage process can be an exciting experience for couples anticipating their wedding day. Aside from planning the reception, inviting guests, and selecting venues, finances play a pivotal role in navigating this new stage of life. Conversations about assets and finances with your partner can be confusing to have. Even more confusing can be what will happen with a couple’s finances if they divorce. This may be a difficult conversation to have with your soon to be spouse when all you are looking forward to are the happy times you will have together. Thus, our firm aims to guide you through the prenup process, specifically what they are and what you should include in yours.

Prenups 101

A prenuptial agreement (commonly shortened to “prenup”) is a legal document created by lawyers that defines the financial roles and responsibilities that an engaged couple will have during their marriage and what will happen with their finances if the marriage ends in divorce. Prenups are helpful, as they not only solidify what specific assets each partner has but can also protect you from any potential debts your partner may have if you divorce.

Prenups have a few different uses. For one, this document can dictate ownership over belongings, from cars to businesses to retirement funds. Additionally, prenups can assign recurring payments that need to be taken care of, such as credit card bills, household expenses, and medical bills. Prenups are also beneficial for solidifying financial issues in a more specified manner. This is important, because if you decide not to get a prenup, state laws will decide how assets and any debts will be divided.

Drafting a Prenup

When crafting your prenup with your partner, it is important to delve into every single aspect of your personal finances, as you will be sharing every part of your life with someone else after the marriage is finalized. Additionally, full disclosures must be provided in the prenup process for your agreement to be enforceable in the event of divorce. It is advisable to make your agreements concise, clear, and holistically readable to any audience. Furthermore, it is it always helpful for an attorney to review your document and revise it to clarify your agreement. It is always preferable to have an attorney draft the actual agreement from the beginning to avoid any mistakes that could invalidate the agreement. We also advise that you keep your prenup up-to-date with a post-nuptial agreement, as new asset additions can change some of the initial agreements you decided upon. Examples of this include if you have children post-marriage or if you decided to buy a house or move into a new property.

Overall, prenups can be a helpful way to specify your assets with your significant other and understand how to divide assets in the case of divorce. Need someone to help look over your prenup and get advice on what you should include in it? Get in touch with one of our experienced attorneys at the Moskowitz Law Group today.