What is an Antinuptial Agreement?
In short. A prenuptial agreement, antenuptial agreement, or premarital agreement, commonly abbreviated as prenup, is a contract entered into prior to marriage, civil union, or any agreement prior to the main agreement by the people intending to marry or contract with each other. The content of a prenuptial agreement can vary widely, but commonly includes provisions for division of property and spousal support in the event of divorce or breakup of marriage. They may also include terms for the forfeiture of assets as a result of divorce on the grounds of adultery; further conditions of guardianship may be included as well.
Why should I get an Antinuptial Agreement?
To protect your assets should your relationship end in divorce, or if your partner dies. I know that it’s unpleasant to consider these things when you feel that you have met that certain someone that you want to spend the rest of your life with.
Asset Protection Strategies: Consider a Tool Often Overlooked
I encounter the question more and more these days of – what do you think of prenuptial agreements? Are they something to be considered for individuals getting married, and if so, who should use them?
Antinuptial Agreements are definitely something for marrying individuals to consider. The interesting thing is that they’re not just a tool for use in situations of divorce. They can also be very important tools as a part of estate planning, particularly if the marriage comes later in life and the marrying individuals want to make sure that children, friends, or charities receive the assets instead of the automatic rights under the law to the new spouse.
A prenuptial agreement is a legally binding contract signed by spouses-to-be that governs how their assets will be divided in the event a marriage is terminated by death, divorce, separation, or annulment. In particular, it spells out in precise detail who owns which assets, which assets are held jointly, and the rights and obligations of each partner. In some cases, related issues, such as alimony, child support, and the provisions of inheritance, may also be covered. For the agreement to hold up in court, both partners should be represented by separate legal counsel. Each partner must fully disclose all financial assets and liabilities to ensure the agreement is not legally voided in the future.
So, let’s consider some uses of prenuptial agreements. Many of you may have adult children. They have established themselves in their careers and accumulated wealth, no doubt like you taught them! One of the very best financial tips you might give your child before marriage is to get a prenuptial agreement, not because you think the marriage won’t last, but for their protection.
In the event of divorce, it will help them make sure what they’ve worked hard to accumulate thus far in life remains theirs. The sums may not always be that large, but think of your own risk aversion to a double-digit loss in the stock market. Without protection, losses of significant percentages are very real in divorce.
Another use of prenuptial agreements is for individuals considering remarriage later in life, whether previously divorced or widowed. One or both spouses may enter the marriage with significant assets. If so, it may be important to ensure family members from the first marriage inherit property and assets.
Once married, unless there are estate-planning documents in place to determine otherwise, a new spouse has an automatic entitlement to a certain portion of assets. A prenuptial agreement, drafted with full disclosure before the marriage, may help avoid such an outcome.
You protect your home from fires and catastrophe, your auto from collision; preserving your assets from events in life can be an important protection measure as well. An Antinuptial Agreement is just like having another form of insurance.