A prenuptial agreement, also called “prenup” or antenuptial, is a legal document drafted before marriage that outlines how to divide property and debts in case of separation or divorce. Although signing such an agreement might seem unromantic, the document’s purpose is to provide a sense of security for both spouses.
To ensure that the prenuptial agreement is fair and protects both parties, consider the following factors before finalizing the document.
1. Your plans and goals
As you think about what provisions to include in your prenup, consider your future plans. Think about your individual goals and the aspirations you have with your soon-to-be spouse. This includes career or education goals, plans for children and even lifestyle choices. Since the prenup will outline the division of assets in the event of your split, it is essential to consider how this may impact your plans.
2. Each other’s financial situation
Think about and understand each other’s finances before finalizing the agreement. You and your loved one should remain transparent about your finances to protect each party’s interests. This includes income, debt, real property, inheritances, pre-marital assets, expenses and business interests.
3. A willingness to compromise
Excellent communication is a vital component of any successful relationship, including communicating when signing an antenuptial agreement. Freely discuss your desires and concerns with your betrothed while remaining open to compromise.
4. The timing of the agreement
Plan the timing of the prenup well in advance of your wedding. This helps avoid any last-minute pressure or coercion to sign an unfavorable contract. Additionally, review and update the document periodically and as your lives evolve.
With careful planning and consideration, a prenuptial agreement can provide security going into your marriage.