They might worry about the possibility of divorce or future conflict in their marriages. A prenuptial agreement can be a powerful tool for those worried about their relationships and resources. Prenuptial agreements eliminate questions about the responsibilities of each spouse and may lead to stronger marriages. They also help take the mystery out of divorce proceedings by clarifying exactly what should happen if the spouses eventually separate.

Someone who recently got engaged may think that a prenuptial agreement could be a useful form of protection but may also worry about how their fiancé might respond to them asking for one. How can recently engaged individuals broach the topic of a prenuptial agreement?

Through a sit-down conversation

A conversation about a prenuptial agreement is a difficult discussion that people may need to have face-to-face with one another. It is all too easy to misread someone’s intentions and tone when communicating via text message or email.

The party proposing the prenuptial agreement may need to prepare for the possibility that their fiancé feels shocked about the suggestion. However, people are more open-minded about prenuptial agreements now than they were just a few years ago. More than 40% of married Millennials and Gen Zers confirm that they signed a prenuptial agreement before tying the knot.

The person suggesting a prenuptial agreement may want to specifically discuss how the agreement could protect both parties. For example, they could propose terms that would be useful for them and also terms that could benefit their fiancé. After all, a prenuptial agreement is usually only a valid and enforceable contract if it includes benefits for both parties.

The process of negotiating a prenuptial agreement can actually be beneficial for the engaged couple. They can clarify their expectations for one another and the relationship and start their new married life with a shared perspective.

Bringing up the conversation early and then also giving someone time to process could help someone secure contractual protections that both strengthen their marriage and reduce the risk of a messy divorce in the future.

Prenups are only for old people

This myth primarily stems from the use of prenuptial agreements in movies and TV shows where some billionaire character marries a woman younger than his children. While it may make for good entertainment, it does nothing to show how useful prenuptial agreements are for people of all ages. Anyone who is old enough to get married and brings any type of assets into the marriage can use a prenuptial agreement to protect the assets that they bring with them.

Prenups are only for the wealthy

While many news pieces are written about actors, musicians and other celebrities having a prenuptial agreement, prenups are not only for the super-rich. Just like there is no age requirement for having a prenuptial agreement, there is no minimum net worth that has to be met before you can have a prenup. Prenuptial agreements are about protecting any existing assets no matter how much those assets are worth.

Prenups mean you’re planning for divorce

This line of thinking is not only incorrect, but also dangerous. When you get behind the wheel of your vehicle, you put on your seatbelt. You don’t do that because you assume that you’re going to be in an accident; you do it because you know that there is a chance that you will be in an accident. Prenuptial agreements ultimately work like a seatbelt, protecting you in the event that your marriage does not work out the way that you intended it to.

Working with an attorney to put together a prenuptial agreement is a great idea for anyone who is about to get married, regardless of their age or net worth. This attorney could help ensure that their client is protected in the event of a divorce.

These reasons may include protecting a family business, keeping financial assets separate, or property ownership. Most of the time, these prenuptial agreements are done right and are legal documents. But there can be situations in which a prenuptial agreement is invalid.

Fraudulent agreement

An agreement may be fraudulent if both spouses do not disclose all of their assets. A spouse may also not disclose the full value of their assets. Either one of these situations may invalidate the agreement.

An agreement made when one person was incapacitated or under duress

Although rare, a person may be coerced into signing a prenuptial agreement. If a person signs an agreement because they are forced to or signs an agreement because of a diminished mental capacity, the agreement may be invalidated.

Improperly filed paperwork

Careless errors can lead to an agreement being invalidated. Errors may include not filling out the paperwork correctly, not having it notarized, not filing the paperwork correctly if necessary, etc.

Not having proper legal representation

If the prenuptial agreement is signed without legal representation, it may be invalidated. Each person should have their own attorney review the agreement and make sure it is valid. A legal professional who is skilled in family law can help their client draft and review a prenuptial agreement that works for their situation. An attorney understands how important it is to protect assets in the event of an unexpected divorce situation.

What is a prenup?

A prenup is a legal contract between two people who are planning to get married. The main purpose of a prenup is to address any property division issues that may arise if the couple chooses to get a divorce. A valid prenup can address almost all financial matters, including:

• Disclosure of marital and separate assets and debts
• Terms detailing property division
• Terms detailing alimony
• Provisions for children from previous marriages
• Protections from other spouse’s debts

Elements of a valid prenup

If you and your fiancé(e) decide to get a prenup, you may benefit from consulting with an attorney to ensure that the courts will consider it valid. In general, a valid prenup must be:

• In writing
• Signed by both parties, and neither must be coerced to sign or under duress while signing
• Signed in front of witnesses
• Signed after both parties have had time to consider the terms of the agreement

The prenup must also contain only accurate and complete information, and not include any illegal clauses.

Deciding whether to get a prenup is never an easy decision, but couples that do have one in place may find the divorce process to go much more smoothly if the time comes. A divorce attorney can review your and your soon-to-be spouse’s assets and help you decide whether a prenup is right for you.

Although the wedding is a tremendous financial investment for two people about to get married, there is an even greater investment they will make, and a greater risk to be insured: the marriage itself. How can this investment be insured?

Prenuptial Agreements

When two people get married, they are throwing in everything together. In many cases, people want to make sure they are protected from the potential for financial loss in the possible event of a divorce down the road.

For people wanting to protect themselves financially, a prenuptial agreement is the time-honored, most effective tool. A prenuptial agreement is, as the name suggests, an agreement made before the marriage vows. The agreement stipulates the division of assets if a divorce should occur in the future.

Multiple Benefits of a Prenuptial Agreement

In addition to protecting each party’s financial interests, a prenuptial agreement also:

• Streamlines the divorce proceedings by deciding things in advance, before the emotions of a divorce are in play
• Solves other marital issues in addition to financial issues, like child custody and visitation and related issues

There are numerous benefits to using prenuptial agreements to protect yourself financially and personally. The most important thing to do is talk to a family lawyer you can trust right away to discuss your prenuptial agreement. Just like an insurance policy, a prenuptial agreement can protect your financial and personal investment, but you need to acquire this insurance policy before the damage happens, so act fast.

But where does that leave you? As a person entering into marriage with someone you love, should you get a prenup?

What is a Prenup?

A prenuptial agreement is an agreement between a husband and wife that covers many important aspects of a divorce. The thing that makes prenups more effective is that they are written out and agreed upon before you are even married. When making the prenup you are still in love and thinking more clearly. You can make arrangements sensibly, without the anger and other emotions associated with divorce, so all the aspects of divorce can be covered and agreed upon in advance.

So Do You Need One?

For years most experts have been saying “yes,” and we’re certainly among them, but more recently, many have been saying it’s only for certain select individual. A recent article in MoneyTalksNews online is a great example. Although they seem to be claiming that only a select group of individuals needs a prenup, their list of people needing one is remarkably comprehensive:

• “People with money…
• People who might inherit…
• People whose partners have debt…
• People who own a business…
• People whose income might radically increase…
• People with children from other marriages”

If this is the group of the ‘specialty cases’ who need prenups, that’s a pretty big group. Said conversely, the only people who don’t need prenups are people without money, people who might inherit something, people whose partners don’t have debt, etc.

Read in that manner: Yes; you need a prenuptial agreement.

At any rate it is better not to trust a finance article with something as important as protecting your financial future. It is better to talk with an experienced divorce lawyer to better understand the risks and rewards regarding prenuptial agreements.

With that said, prenuptial agreements aren’t perfect. In fact, there are circumstances in which an individual involved in the prenup legally challenges the document on the grounds of illegal or unfair circumstances.

If the contract is simply unfair and unbalanced in total, this is called an “unconscionable” contract. A judge could strike down the prenup if it is deemed that it favors one spouse over the other.

Another common reason for a prenup to be successfully challenged is if one of the spouses was pressured into signing the prenup, or if he or she did not have the time to fully consider the personal and financial weight of the contract.

Then there are the provisions themselves. If fraudulent provisions were inserted into the prenup, or if anything illegal was included in the prenup, then it could be challenged. Similarly, if a spouse lied in the prenup, then parts of the prenup could be eliminated.

Source: FindLaw, “Top 10 Reasons a Premarital Agreement May be Invalid,” Accessed Sept. 13, 2017

Forbes explains that people no longer consider prenuptial agreements as only needed by the very wealthy or famous. Certainly as the value of your assets increases your concern for protecting them may increase as well but the truth is that any couple can benefit from a marital contract. A variety of situations may make such an agreement helpful for you. If either you or your future spouse has inherited or is set to inherit a large sum of money or other assets, a prenup can be a great way of protecting those.

If you own or have an interest in a business, a prenup can protect not only you but the business and any partners or employees involved as well. Many people in second marriages use prenups to keep some assets separate either for children from earlier marriages or to satisfy obligations to former spouses.

However important a business can be to entrepreneurs, many don’t properly protect their businesses against the potentiality of divorce. Dissolution of marriage is one of the most dangerous enemies of business. Many divorces end with businesses being liquidated or co-ownership structures which are detrimental to the spouses with original ownership.

How to Protect Yourself and Your Business

A recent article in MarketWatch discusses protecting your family business in divorce. There are a number of important ways to protect your business in divorce. Assuming

• A prenuptial agreement: It is always best to handle the details and add the proper protections for your business in divorce long before a divorce is even a consideration. Before you get married, a prenuptial agreement (or a postnuptial agreement once you are married) is a great way to make sure your business is not divided in divorce.
• A buyout agreement: One of the most powerful tools to protect your business is a pre-emptive buyout agreement that triggers an automatic buyout in the event of a divorce and specifies the cost-structure parameters.

There are also options to dissolve, divide or share business ownership after divorce. However, these methods often don’t work for a couple that has divorced and business owners who do not want to lose control and ownership of a successful enterprise.

Assuming you want to keep your business and protect your ownership interests, the most important thing you can do is plan ahead. Talk with an experienced lawyer about drawing up the proper documents and agreements as early in the relationship as possible, so you can protect your business and your future.

But it got us thinking about what can, and can’t, be included in a prenuptial agreement. While some of this information may be obvious, or even common knowledge, some of it is very interesting and specific. Take a look at some of the things you are allowed to include in a prenup, and some things that you are forbidden from including in this important document:

• You CAN distinguish what property/assets are classified as “marital” or “separate,” and you CAN protect yourself from your spouse’s debt.
• However, you CAN’T include anything in the prenuptial agreement that deals with child custody or child support.
• You CAN make provisions that help you and your spouse provide for a child from a previous relationship.
• But you CAN’T make any provisions that are illegal in any way.
• In addition to adding those “lifestyle clauses,” you CAN add provisions that dictate how property will be divided should a divorce occur.
• But you CAN’T have language in the contract that encourages divorce or has a spouse waiving his or her right to alimony (or spousal support).

Ultimately, there is a lot that goes into these important documents. So if you and your spouse are considering a prenuptial agreement before walking down the aisle, or if you and your spouse are disputing a prenuptial agreement, it behooves you to seek experienced legal counsel.

Source: FindLaw, “What Can and Cannot be Included in Prenuptial Agreements,” Accessed Sept. 3, 2015