No person should get married without a prenup. Prenuptial agreements ensure that when things go south in the marriage, both parties are protected. Here are some important facts about prenups:
The Prenuptial Agreement
A prenuptial agreement is a private agreement executed before a couple marries that specifies how their assets will be divided in the case of divorce or death. The legitimacy and enforcement of prenuptial agreements are controlled by state legislation. Which state’s law applies is determined by where the marriage took place, where the parties lived during the marriage, and which state’s laws the agreement specifies. In many cases, couples in this scenario may look for state laws that will help them carry out the requirements of the prenuptial agreement.
It can range from $1,600 to $10,100, or even more if the estate is particularly convoluted. For a fixed price, a basic agreement can be established. However, attorneys would often charge their hourly fee for more involved situations.
A Prenup Compared to a Postnup
Postnuptial agreements are similar to prenuptial agreements, but they take place after the couple has married. They have the same legal standing as prenuptial agreements. The reasons for getting one vary—sometimes parties who were unable to complete the prenuptial agreement prior to the wedding will return to it after the wedding, sometimes an inheritance will be received and the parties will want to address it, and sometimes a large liquidity event, such as the sale of a company, will occur and the parties will want to address what will happen with the proceeds.
Full Disclosure is Crucial
Both parties must reveal all of their assets. That is not difficult to do in this case because every one of the parties can be found. However, in many states, it is still required to be stated in the agreement. In some states, the estimated inheritance of each party is also taken into account.
Fairness is Important
Most states require that the agreement be fair, that the parties fully disclose their assets, and that each party retain their own attorney.
Prenuptial agreements ensure that fairness is always established. That is why prenuptial agreements need to disclose everything in terms of assets the parties own. Prenuptial agreements are important to minimize the fallout of a divorce or sudden death.