Prenuptial agreements, commonly called prenups, are legal contracts entered into by couples before their marriage. The agreement outlines the terms and conditions of the couple`s property, assets, and support obligations in the event of a divorce. While no one wants to think about divorce before they are married, prenups can offer peace of mind and protect the rights and interests of both parties.
If you are considering entering into a prenup, it is important to understand the agreement`s terms and what they mean. Here are several common prenup agreement terms you should be aware of:
1. Separate Property: This term generally refers to assets owned by each party before the marriage. A prenup can specify that these assets remain separate property and are not subject to division in the event of a divorce.
2. Division of Property: Many prenups outline how property acquired during the marriage will be divided if the couple divorces. Couples can decide on a percentage of assets that each party will receive or specify which assets will go to each party.
3. Alimony/Spousal Support: Spousal support or alimony is a payment made from one spouse to another to support them after a divorce. The prenup can set terms for how much spousal support will be paid and for how long.
4. Debts: A prenup can also address how debts that are incurred during the marriage will be divided. This can be an important term if one spouse has significant debt before the marriage.
5. Inheritance: Prenups can also address how inheritance will be divided in the event of a divorce. If one spouse expects to receive a significant inheritance, they may want to protect those assets by including them in the prenup.
6. Protection from Creditors: Prenups can offer protection to one spouse`s individual property in the event the other spouse has significant debt or legal action taken against them.
While prenups are not for everyone, they can be a valuable tool for couples who want to protect their assets and ensure financial stability in the event of a divorce. Consulting with a family law attorney can help determine if a prenup is right for you and what terms should be included in the agreement. Remember, a prenup is a legal contract and should be taken seriously, so be sure to discuss all aspects with your partner before agreeing to any terms.