Everything is fair in love and war. Is it? Not really. What can be fair about a person you loved, taking advantage of your finances, when you aren't in love anymore? When the courting period turns into a marriage, many realize that it comes with a great responsibility. It demands more than what you had expected, and brings on a barrage of unsaid expectations from both sides. To make things worse, immediate and extended families intervene, taking matters into their own hands, leaving little room for arbitration. When all of this gets too hot to handle, the couple is left with only one word say to one another.
Divorce. And then money becomes the string that gets pulled from both the ends, creating an irreparable rift between the two ends. To avert situations like these, many couples enter into prenuptial agreements, which work in favor of both the parties, in case you decide to separate at any point. Let's see exactly how does a prenuptial agreement work.
What is a Prenup?
A prenup is essentially a private contract between two parties before marriage. This is how it derives its name too, 'pre' which means before and 'nuptial' which means marriage. Each couple can get their custom-made prenuptial contract. However, all the contracts include division of property and partner's support in case of a divorce or death. If you study prenuptial agreement samples, you may come across clauses about custody of children and guardianship too.
Why Get a Prenup?
So, how does a prenuptial agreement work? When life comes with no guarantee, a marriage is no exception. A prenuptial agreement is basically an arrangement for the rainy day. It is an insurance for an emotional roller coaster ride. In case of a legal breakup, an agreement as such helps both the partners maintain their financial statuses and take care of themselves (individually) without any help. A well negotiated prenup helps the wealthier spouse to retain the wealth and prevent any kind of major financial loses. Similarly, it gives the less wealthier spouse the assurance of retaining entitlement of property. A prenuptial agreement eliminates the arguments over who gets what, during a divorce.
Additionally, as a prenuptial is signed before a marriage, the details of the same can be discussed with a maturity and without any biases by both the partners. After narrowing down on the details, the couple has to sign it. It is recommended that both the parties have their separate attorneys, to draft a fair and square prenup. At the time of drafting the contract, both the parties have to disclose all their assets. If at any point of the divorce it is found out that a spouse had hidden property, the prenup will be declared as invalid.
FAQs About Prenups
- What is a prenuptial agreement?
- Why do we need it?
- How much will we have to spend on lawyers to get such a contract before marriage?
- Who will pay the lawyer's fees?
- What all needs to be discussed during drafting a prenup?
- How will my children benefit from a prenup?
- In what kind of cases can a prenup be overruled?
- How can a prenup affect the emotional status of our marriage?
- To whom does a prenup becomes necessary?
- What are separate and marital assets?
All the above questions need to have answers while making the prenup. Prenuptial contracts are advisable to people who are remarrying, who are extremely wealthy, who have children and other obligations that need support. Prenups don't just mitigate losses during a divorce, but also ensure distribution of your property after your demise, as per your desire. Also, in case you are marrying someone who bears a heavy debt and you don't want to be a part of it, a prenup can be your excellent savior.
In case your spouse is financially weaker than you, a prenup can protect your spouse in case of death from any other family member's claiming the property. The answer to how does a prenuptial agreement work, lies in the matters that are discussed while drafting a prenup. However, in totality, a prenuptial agreement is a way of ensuring a happy ending to what seemed forever.