Is there anything more romantic than writing a prenuptial agreement in the months leading
up to your wedding?
Negotiating a prenuptial agreement with your prospective husband, as difficult as it may seem, is practical and a smart idea, especially if one partner has more assets than the other. Prenuptial agreements are a mechanism for both parties to enter a marriage with complete awareness of their partner's finances and assurance of what would occur in the event of a divorce.
Before analyzing the enforceability of prenuptial agreements, however, let's first define the word.
What is a Premarital Contract?
A prenuptial agreement is a contract executed by two parties prior to marriage that outlines their respective rights in the event of a divorce. Even people with average salaries utilize them to address their possessions, children from prior relationships, etc. In recent years, prenuptial agreements have grown even more prevalent among millennials.
There are several reasons to acquire a prenup, and they can cover a wide range of topics, including:
Property partitioning
inherited assets and assets obtained through the marriage
Debts
Tax filing status
What can invalidate a prenup?
Do prenuptial agreements hold up in court? The answer is "yes" if the task is performed appropriately. The following factors can render a prenuptial agreement void:
1. Unconscionability
The contract cannot contain clauses that are manifestly unfair or unjust to one of the parties. A court has defined unconscionable as follows: "An agreement is unconscionable if it is one that no person in his or her senses and not under delusion would make on the one hand and no honest and fair person would accept on the other, the inequality being so strong and manifest as to shock the conscience and confound the judgment of any reasonable person."
If a prenuptial agreement is deemed unconscionable, a court will certainly invalidate it.
2. Failure to disclose
Both parties are required to provide all financial information to one another. If it is discovered that one party concealed assets, a court may declare the agreement null and invalid.
3. Coercion or coercion
The prenuptial agreement must be signed by both parties without coercion or duress from the other spouse. In other words, the signatory's mental condition is crucial.
4. Fraud or false promises
In a prenup, you cannot include a deceptive phrase or a promise that cannot be fulfilled.
5. Spousal support restrictions
Some states have rules that require prenuptial agreements to be modified if one spouse will require public support following a divorce. No lawful prenuptial agreement can offer less spousal support than is mandated by state law.
A legitimate prenuptial agreement must fulfill the following criteria:
Prenuptial agreements are generally enforceable if the following requirements are met:
Must be in writing; verbal agreements are invalid in court.
Must be signed by both sides - The final agreement must be signed by both parties.
Must have obtained comprehensive information about the property and finances of the other spouse – The opposite party must be made aware of all assets and obligations.
Must have had at least seven days to evaluate the document before signing - A prenuptial agreement cannot be signed on the way to the altar; there must be at least one week to review the terms before signing.
Must have been represented by a separate counsel or waived the right - Each partner must have been able to consult their own independent attorney, or they must have waived this right.
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