A prenuptial agreement is a powerful tool for Carlsbad couples who want the security of knowing how property and finances will be divided in the event of a divorce. There are many benefits to a prenuptial agreement. You will have sense of security and assurance, knowing that a divorce will not likely destroy you financially.
Requirements for a valid agreement
There are various requirements for a prenuptial agreement prenuptial agreement. The agreement must be in writing and signed by both parties. The terms must be fair, and fairness depends on the unique circumstances of each situation. Terms that are considered fair in your friend’s prenuptial agreement may not be fair in yours, since you have different life situations.
Both parties must make a full and honest financial disclosure before the agreement is signed, providing complete information for all assets and debts. Full disclosure includes any potential future events that may impact the fairness of the agreement’s terms. For example, if your spouse is expecting to receive a large inheritance when an elderly grandparent dies, this information should be included in the prenuptial agreement.
Factors that could impact your agreement
Although the agreement is intended to be permanent, several factors could result in the agreement being declared void. One of these factors is if both parties had attorneys. If you had an attorney help you evaluate what to put in the agreement, but your spouse didn’t, the agreement could be deemed unenforceable due to the perceived lack of fairness.
Other factors include providing false or incomplete information or whether circumstances have changed since the marriage began. Couples often include alimony or spousal support terms in prenuptial agreements, but if income information changes, the alimony terms may no longer be fair.
Some couples choose to exclude premarital assets from an agreement, although this is not a requirement. Any terms related to children, such as language regarding child custody or child support, are not allowed in an agreement.
Couples concerned about how a marriage or divorce could impact their valuable assets or financial situation could benefit from a prenuptial agreement. A discussion with an experienced attorney prior to signing any agreement is highly recommended.