What is a Prenuptial Agreement? What Does Prenup Mean?

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prenup means Prenuptial agreements are legal contracts that couples create before getting married. [0] . The prenuptial agreement outlines the rights of each party during and after marriage, including divorce and death. While prenups are often associated with wealthy couples protecting their assets, they also can protect one spouse against another spouse’s debts and set […]

prenup means

Prenuptial agreements are legal contracts that couples create before getting married.

. The prenuptial agreement outlines the rights of each party during and after marriage, including divorce and death.

While prenups are often associated with wealthy couples protecting their assets, they also can protect one spouse against another spouse’s debts and set up spousal maintenance for the spouse who stays at home. They can even protect inheritances for children of previous marriages.

Prenuptial agreements can play a key role in establishing a couple’s estate planning. Prenups are governed by different state laws, and it is best to speak with an attorney before signing to make sure your agreement is valid.

. In the absence of a prenuptial agreement, state laws governing community property will determine who owns what during marriage or in case of divorce.

The pros and cons of prenuptial agreements

Advantages
Reduces conflict in case of divorce.	Can be uncomfortable for couples to consider the possibility of divorce.
May help prevent someone from losing their own assets or becoming responsible for the other person’s debts.	May be invalidated by a court if not set up properly according to state laws.
Starts a conversation about finances and estate planning in a marriage.	Can be expensive to set up, depending on the complexity of the assets and attorney fees.

The components of a prenup

State-specific requirements for prenuptial contracts, also known as premarital agreements, can differ. Prenuptial agreements can include one or more of the following, depending on what the couple needs.

List of all assets owned by each individual, such as inheritances, businesses, and property. They will also decide on how to divide assets acquired during marriage and assets that they may inherit in case of divorce. If the couple is living in a state that has community property laws, there may be restrictions.
List of all debts, such as student loans and medical bills. They will then decide if they want to separate the debt and if so, how to deal with any joint debt.
Tax consequences , such as an agreement to jointly file or separately and the responsibility for tax obligations.
Dispositions for divorce such as relinquishing the right to receive alimony. This is not possible in certain states, and can be challenged in court by one party who didn’t seek independent legal advice before signing.
Death benefits, such as survivorship or death benefit.
Clauses Added clauses as regards confidentiality, pet custody rights and marital residency rights.

Also, it’s important to know what a prenup does not include. As your state will decide on child support and custody, prenups cannot include such provisions. Also, they can’t specify non-financial duties such as what chores are done by each partner.

A divorce court may overturn prenuptial agreements if they are unfair, unenforceable or signed by coercion.

Create a prenup

Consult an attorney for help in drafting a prenuptial contract. It is possible to create a prenuptial agreement yourself using downloadable forms or online software. In general, the process of creating a prenup is two-steps:

The parties discuss the options and agree upon terms. You can do this with or without legal counsel.
Find out whether your state has a requirement for a notarized signature or witness.

Prenup vs. postnup

When they were created is the main difference. Prenuptial agreements are signed by two parties before they get married. Postnuptial agreements are created after the couple has been married.

They can be the same as prenups and follow the same guidelines, but are often drafted in response to an event that occurred after the marriage. These events include the start of a business, an inheritance or the termination of employment by a spouse.