When couples decide to tie the knot, some choose to create a prenuptial agreement, often called a “prenup.” This legal document, signed before marriage, outlines how you and your future spouse will handle certain financial matters during your marriage and in case of divorce. But what exactly can these agreements cover?
What can it include?
Prenuptial agreements can address several key areas:
- Property division: This includes how you and your spouse will split assets bought before and during the marriage.
- Spousal support or alimony: The agreement can specify if one spouse will pay alimony to the other in case of divorce, and if so, how much.
- Debt allocation: It can determine who’s responsible for debts brought into or acquired during the marriage.
- Inheritance protection: The law usually treats inheritances as your personal property. However, they can become marital property if commingled. A prenup can help avoid any confusion about your inherited assets if you divorce.
For the agreement to be legally binding, it must be in writing and signed by both parties. It’s worth noting that couples can still amend or revoke their prenuptial agreement after marriage, as long as it is also in writing and agreed upon by both spouses.
What can it not include?
While prenups are flexible, there are limits to what they can cover:
- Child custody and support: You can’t decide child custody or support in a prenup. Courts make these decisions based on what’s best for the child at the time of divorce.
- Provisions encouraging divorce: Your prenup cannot include anything that seems to encourage or provide an incentive for divorce.
- Unconscionable terms: If your prenup has terms that are extremely unfair and could leave one spouse with nothing, a court will not enforce it.
Moreover, for a prenuptial agreement to be valid, both parties must fully disclose their finances. This means being honest about all assets and debts. Each person should have their own lawyer to ensure they understand the agreement and they can properly protect their interests.
Make informed decisions
Every couple’s situation is unique, and your prenup should reflect your shared values and goals. If you’re unsure about the process, an attorney can provide the information you need to make decisions that feel right for you and your partner.