Prenup Basics

Basically, a prenuptial agreement is a contract between two spouses, allowing them to plan for their financial future together. A prenuptial agreement is drafted and signed by both spouses prior to their marriage, and upon marriage the agreement becomes enforceable.

Although prenuptial agreements must be fair and reasonable, you and your spouse have tremendous flexibility in determining your goals and the complexity of your agreement.

Prenuptial agreements can cover many situations, such as:

•    Determining who will keep the primary residence, vacation homes, etc.
•    Deciding the future of your assets in the event of death, separation, divorce, and/or the occurrence of a certain event (such as alcohol consumption by a party).
•    Determining how prior debt of the parties will be allocated.
•    Waiving or modifying spousal support and alimony.

These are just a few prenuptial agreement basics, however prenups can be much more complex and detailed. In addition, it is not uncommon to have a prenup that terminates after a predetermined period of time (such as after seven years of marriage).
The basic prenuptial agreement process begins with a discussion between you and your spouse regarding your marital financial goals. After such a discussion, you may want to consult with an attorney to draft your agreement. Once your agreement is drafted, it must be presented to your spouse for review and signature. Depending on the provisions in the agreement and applicable state law, your spouse may need to hire an independent attorney and sign the prenup several days before your wedding.

Contact Red Leaf Law today for a free initial consultation, and one of our attorneys will further describe prenuptial agreement basics to you.