WESOS Ask Jade November 2024 Prenuptial Agreements

What is a Prenuptial Contract?

A prenuptial agreement, commonly known as a prenup or premarital agreement, is a legally binding contract signed by a couple before marriage, specifying how their assets, debts, and spousal support will be handled in the event of divorce or death.

It aims to protect each party’s individual financial interests and outline the terms of property division and alimony/maintenance.

It protects assets (business) by clearly outlining what is marital and what is separate property Prenups aren’t just for the rich and famous. Prenups aren’t just for celebrities and wealthy people with loads of property and investment accounts.

They’re for everyone. They can address whether you and your spouse will have a

joint bank account, whether you’ll pay off your student loans separately or together, and who gets what if you divorce. Think of prenups like insurance Think of a prenup kind of the way they think of car insurance — as a financial safety net.

You are not preconceiving that a divorce is going to occur. You are simply discussing important financial issues that come up in every marriage.

Making a Valid Prenup

As prenuptial agreements become more common, the law is becoming friendlier toward them.

Important requirements:

-Financials disclosures (awareness of rights/assets you may be waiving)

-Separate attorneys (integrity and equity of the agreement)