A prenuptial agreement form is a legal agreement that is signed between the couples before they tie the knot and walk down the aisle. This agreement is separate from the emotional decisions and a necessity for every couple. This document should be signed by you and your partner in order to go through from any unexpected or unpredictable situation that occurs in the future.
Furthermore, most couples don’t understand the essence of this document. Since the number of divorces is increasing in the United States so couples must think over this matter and try to act prudently in this regard. The prenuptial agreement may sound indistinctly unromantic to you but it is an important document for your own safety.
Table of Contents
- 1 What is a prenuptial agreement?
- 2 Why should you sign a prenuptial agreement?
- 3 What to include in a prenuptial agreement?
- 4 The advantages and disadvantages of prenuptial agreement:
- 5 Conclusion:
What is a prenuptial agreement?
A prenuptial agreement is a legal agreement that is signed between couples before their marriage. This contract is used to decide on to the financial arrangements in between the spouse. It identifies what will happen in case of divorce or separation to the couple’s money, asset, and business. Moreover, it also establishes the rights for each spouse. The agreement sets out the following;
- The future earnings
- Possession of assets
- Potential division of wealth
- Other properties
According to a survey, in the US, 50% of all marriages end in divorce. The main purpose of signing this document is to protect yourself against future financial losses. The agreement is not just beneficial for wealthy spouses but also for the middle class and upper-class spouses. A prenuptial agreement plays a great role when it comes to protecting the rights of spouses.
Why should you sign a prenuptial agreement?
There are various reasons that why couples require signing the prenuptial agreement before the marriage. Some of them are as follows;
- It makes sure the protection of one party regarding the debts of the other.
- It identifies whether the property should be passed on after the death.
- The agreement guarantees to protect the specified assets of one party that they have selected.
- In the case of divorce, it specifies the property division.
- They simplify the financial responsibilities of the two parties.
- The contract also states who will inherit the property, money, and assets after the separation or divorce.
What to include in a prenuptial agreement?
For every couple and marriage, the prenuptial agreement varies on the basis of the specific situation. The following areas should be covered in the agreement;
- The contract indicates the property that should be considered separate among the couples. Before, inheritance, marriage, and personal objects, these properties and assets are acquired by the partners.
- It should define where the property and assets will go after the death of one of the spouse during the marriage or when they get separated.
- For the couple’s maintenance and support, it should specify the difference and preferences of couples. This is usually referred as spousal support. In case of divorce or separation, this is financial support that is given by one of the spouses.
- The agreement should clearly state that how the joint property that was bought together will be distributed.
- In case, the couple has children together after their marriage then who will be responsible to keep and support the child.
The advantages and disadvantages of prenuptial agreement:
Let us discuss below the advantages and disadvantages of the prenuptial agreement;
We usually see that couples fight due to financial problems. It doesn’t matter how much they love each other, ones there comes a time when they will fight over financial issues in case they are facing any. With the help of prenuptial agreement, you can resolve these financial problems. It assists you in discussing financial matters down the road. It also makes sure about your financial security.
In different cases, we see that where one partner is frugal and responsible about spending money whereas the other one spends irresponsibly. So, in this situation, the spending habits should be considered. By filing this agreement, the one who did not spend much and saved money do not get penalized or punished.
This agreement is highly beneficial for children. During the marriage, when spouses have children they have to be looked after if they are getting separated or divorced for any reason. Children are their responsibility so you should decide on who will take their charge for their financial matters. This way, they are not left unattended after the death or divorce of their parents. You may also like Marital Settlement Agreement Templates.
The agreement can be beneficial for different reasons but it may erode the trusts among both of them. For instance, signing this contract does not make sense if the partners are young and have started with equal contributions. This may erode their trust upon each other. It can also make the any one of the partners suspicious about their motives.
Inefficient to cost
According to some of the experts, when the couple takes a divorce, the prenuptial agreements prevent costly litigations. However, according to some of the advocates, most of the lawyers setting aside partners agreement and this results in zero cost saving. The partners who are less wealthy and have irregular terms and conditions, usually happen to them.
Lack of faith
It doesn’t matter how much you love your partner by signing a prenuptial agreement, you are questioning their honesty. Hence, this can state that the lack of faith and trust among you both. This may also indicate that you are insecure about their relationship, therefore, you are filing this contract. When you wish to protect yourself more than your partner then they will judge you and your commitment towards them.
In conclusion, filing a prenuptial agreement form protects yourself from future losses in case after your marriage any unexpected or unpredictable situation occurs. This agreement protects the assets of the spouses in case of separation or divorce.