A marriage proposal is a major step in a couple’s relationship. Once this occurs, they will usually focus on wedding planning. They’ll need to find the venue, buy dresses, come up with the guest list, find a caterer and handle any other tasks that they want for the wedding.
While most people are familiar with those wedding planning steps, some may not realize that there’s an important task that’s often overlooked. This is creating a prenuptial agreement.
What is a prenuptial agreement?
A prenuptial agreement, or prenup, is a legal contract that both parties sign before they get married. It outlines how their assets and debts will be handled if the marriage ends in divorce, but it can also cover what happens if one party dies. While some people think that only celebrities or the ultra-wealthy need this type of protection, it can be valuable for anyone who’s considering marriage.
What can a prenup address?
A prenuptial agreement can cover a wide range of financial matters. These include spousal support, property division and ownership of retirement accounts. It can also list how debts, such as student loans, will be managed.
There are specific limitations to what a prenup can dictate. For example, matters related to child custody or support can’t be included. This is because decisions related to those matters have to be made based on what’s in the best interests of the child at the time that the split occurs.
Prenuptial agreements aren’t something that can be handled at the last minute. In order to be enforceable, both parties must provide a full and honest disclosure of their assets and liabilities. It has to be signed voluntarily and without pressure, so presenting it just before the wedding won’t work.
