A prenup contract is an agreement signed between two parties, where they clearly define and safeguard their personal assets. It is a legal contract that helps declare individual assets and debts before an individual’s marriage. The document acts as a precautionary measure to prevent the unfair allocation of assets in the case of divorce or separation of a married couple. Both parties voluntarily sign the agreement to make it enforceable in court. They must also have independent legal advisors for the legal proceedings related to a prenup. Moreover, both parties must disclose all their assets and debts during the prenup process to prevent future disputes.
What Are the Benefits of Getting a Prenup?
Here is a breakdown of the benefits of getting a prenup in the United States.
- The prenup contract is legally binding for both spouses. That is why it ensures that both parties abide by the rules and regulations mentioned in the legal document.
- The prenup helps distinguish the properties previously owned by each spouse during divorce or separation. It ensures everyone gets back their acquired property and assets without discrepancies or legal complications.
- The personal assets of each spouse get clearly defined within the prenup contract and remain as it is even after separation or dissolution of marriage.
- The prenup contract makes both parties financially secure before and after marriage. It also saves both spouses from personal liabilities.
When Can an Individual Get a Prenup?
A prenup contract or agreement is necessary for individuals who are about to get married to their respective spouses. Moreover, here is a breakdown of cases when an individual can decide to get a prenup in the US.
An already married individual who seeks to marry another person after divorce can get a prenuptial agreement to ensure their assets, property, and children get the protection they deserve from the law.
If an individual has a child from a previous marriage, the prenup ensures they get the benefits they deserve after the second marriage. Thus, a prenuptial agreement helps set up financial rights over children. It also ensures that an individual’s assets get passed on to their children.
Difference in Assets
Each spouse must safeguard their personal belongings, irrespective of economic status. A prenup states that the personal assets of individuals stay with them in case of an unfortunate situation, such as the demise of a spouse or dissolution of marriage.
Difference in Debt
A prenup ensures that each party is liable for paying their debts. All personal debts before marriage must stay with the respective individual and not affect the other, per the agreement guidelines. Such terms and conditions included in the agreement ensure that no one has to bear the debt burden of another person after marriage.
If either spouse has an existing business, that is a personal asset. It means the individual does not have to lose ownership if they sign the prenuptial agreement. Moreover, the profits, losses, debts, and other assets related to the business also remain with the owner after marriage.
Why Do Individuals Need a Lawyer to Sign a Prenup?
Any individual can draft a prenup by seeking help from a professional lawyer. The attorney helps people define all the assets, debts, and liabilities they own in the legal agreement. The professional also helps review and moderate the prenuptial agreement if it has loopholes, errors, or discrepancies. So, individuals can ensure that the drafted contract is error-free if a prenup lawyer reviews it. An experienced prenup lawyer will also know the state or federal laws associated with creating the contract. Here is a breakdown of why an individual must consider hiring a prenup lawyer ahead of marriage.
Understands Personal Assets and Liabilities
Individuals must state all their assets and liabilities before marriage in a prenup contract. An experienced lawyer goes through all the documents a person has and creates a specific list of assets and liabilities that get included in a contract. Moreover, the lawyer also helps document management to protect an individual’s assets in the future.
Verification of Relevant Documents
The lawyer helps individuals ensure that the documents they submit for the prenup contract get verified by the state authorities. The professional attorney conducts document verification for the existing pieces of evidence and collects more proof if required.
The drafting of a contract is one of the most significant steps for a prenup. Since it is a formal process, an experienced lawyer is the most convenient resort to draft, review, and moderate it according to the client’s suggestions. The professional attorney ensures that no specific detail is left out in the prenup draft and verifies every clause before proceeding with the final copy. The lawyer also ensures that the prenup aligns with the current rules and regulations related to US laws.
Key Terms Related to a Prenup
It is easy to get a prenup, but the laws related to the legal agreement are complicated. Not everyone may be well-versed in such laws. That is why it is advised to know key terms related to a prenup, as mentioned below.
- Spousal Support: Alimony or financial support individuals give to their spouse according to the court’s order.
- Child Custody: An individual’s right to have daily care, control, and responsibility for the child according to state or federal laws.
- Asset: A useful thing that holds value for a person.
- Contract: A spoken or written agreement enforceable in court or other legal proceedings.
- Divorce: The official separation of a married couple signifying the dissolution of their marriage.
- Liability: The legal responsibility of an individual or organization for money, property, or similar things.
- Debt: The sum of money due or owed by one person or organization to another.
The prenup includes complex terms and conditions that an individual may not be able to understand before signing it. That is why it is recommended to seek advice from a lawyer to draft the legal agreement. If you are looking for a professional lawyer to draft your prenup, contact ContractsCounsel now. Visit the official website, state your requirements for a project, and get the best legal assistance.