Prenuptial agreements have gained popularity again in recent years, with more couples choosing to sign a contract before their marriage. When you decide that a prenuptial agreement is right for your relationship, you need to consider a variety of elements to ensure that you get a comprehensive contract.
There are several components that your prenuptial agreement may include.
Define marital and individual property ownership
Prenuptial agreements set expectations for the retention and distribution of assets, including the assets each of you brings into the marriage as well as those acquired while you are together. Establishing who retains which assets sets clear parameters for both parties to understand the potential outcome of property division.
Detail expectations of roles
Some prenuptial agreements also provide expectations of each party’s role in the marriage. This includes the responsibilities carried for rearing children, further education, employment and decision-making. Setting these boundaries may reduce conflict in the relationship.
Include a sunset clause
A sunset clause establishes a deadline after which the prenuptial agreement is void. When your goal is protecting vast family finances from a potentially short-term situation, a ten or twenty-year sunset clause can help provide peace of mind. It also shows the other spouse a sign of faith that the contract invalidates automatically after a certain point.
A prenuptial agreement sets expectations, establishes financial protections and allows both parties to enter the marriage without uncertainties. Draft a contract with equitable, fair representation for both of your interests to ensure an enforceable agreement in the event of a divorce.