Prenuptial agreements: What to know before saying, “I do”

Envato Elements Marriage is a big commitment, legally and emotionally, and with the common perception that half of marriages end in divorce, a prenuptial agreement prior to marriage can give both parties some peace of mind. While the “prenup” conversation is usually centered around celebrities or high-net-worth individuals, it can actually be a useful and practical planning tool for anyone. If you’re wondering “what is a prenup and do I need one,” let’s break it down. What is a Prenuptial Agreement? A prenuptial agreement is a written contract entered into by two individuals prior to marriage. It typically sets out how each person’s assets, debts, and even additional matters such as how to handle the issues of spousal support, child custody schedules, and each person’s incomes will be handled in the event of divorce or death. Since Idaho is a community property state, meaning that without an agreement or contract otherwise, all assets, property, and debts accumulated during the marriage will likely be divided equally between both parties. A prenup can be a helpful tool to customize these issues to fit a couple’s specific circumstances and needs. Clarity and Predictability Marriage is ideally a lifelong commitment and it is essential to have discussions up front about important topics such as finances and debts. A prenup can assist in these important conversations and help both parties understand any legal ramifications that they wouldn’t have otherwise considered. Additionally, a prenup can clarify both parties’ expectations and reduce uncertainty in the event of divorce. Separate Property and Debt Protection Separate property/debt is any asset or debt that due to how it was obtained (often prior to marriage, a gift, or inheritance) remains characterized as exclusively owned—or owed—by that individual. A prenup can protect things such as a house purchased prior to marriage, an inherited family business, farm, or any other property of value. It can also clarify that any major debts, such as student loans, remain the debt of that individual and the other spouse is further shielded from liability. Efficient divorce proceedings In the event of a divorce, a prenup can make the division of assets and debts and other issues such as spousal maintenance, easier to resolve, which can save time and money. Limitations A prenuptial agreement cannot always be enforced as written, as circumstances often significantly change from the time the prenup is signed to the time of divorce. A prenup that was fair at the time of marriage, may be completely outdated 10 years into the marriage. Some couples address this by revisiting or updating the agreement during the marriage. Other issues such as spousal support or child custody provisions could potentially be modified by a judge, as these are discretionary issues for a court to decide, especially if one party challenges the provisions. Validity of a prenup It is important that both individuals fully understand what they are signing and any legal consequences. If a prenup is clearly one-sided or signed under duress, these could be reasons for a court to set the entire agreement aside. Ideally both individuals would meet and discuss the prenup with their own independent legal counsel prior to signing. Is it right for you? A prenup isn’t for every couple, and many may feel the default community property system is sufficient in their particular circumstances. If you are considering a prenup, the best next step is to consult with an attorney. The conversation may be uncomfortable at first, but it is best to address these important issues up front when you are both on the same page, rather than down the line when the relationship has fallen apart and communication has broken down. The post Prenuptial agreements: What to know before saying, “I do” appeared first on East Idaho News.
Source: eastidahonews.com