Feeling premarital jitters? One of the main reason behind this, is a lurking fear of losing money and sharing assets with your ex-spouse if the marriage doesn't last. In fact, it could be the last nail in the coffin for you if you do have a marital breakdown. Prenuptial agreements are meant to solve that issue. It is a legal contract to be signed by a couple before taking marital vows. Here is a basic format to help you understand how they should look and what they must include.
Sample Agreement
Premarital Agreement
(legal name), hereinafter referred to as Prospective Husband, and (legal name), hereinafter referred to as Prospective Wife, hereby agree on this (date) day of (month), in the year (specify year), as follows:
- Prospective Husband and Prospective Wife contemplate marriage in the near future and wish to establish their respective rights and responsibilities regarding each other's income and property, and the income and property that may be acquired, either separately or together, during the marriage.
- Prospective Husband and Prospective Wife have made a full and complete disclosure to each other of all of their financial assets and liabilities, as more fully set forth in the accompanying Financial Statements, attached hereto as Exhibits A and B.
- Except as otherwise provided below, Prospective Husband and Prospective Wife waive the following rights:
- To share in each other's estates upon their death.
- To spousal maintenance, both temporary and permanent.
- To share in the increase in value during the marriage of the separate property of the parties.
- To share in the pension, profit sharing, or other retirement accounts of the other.
- To the division of the separate property of the parties, whether currently held or hereafter acquired.
- To any claims based on the period of cohabitation of the parties.
- (Additional provisions to be mentioned here. e.g. specifications that the children will be raised in a particular religion, allocating household chores between spouses, etc.)
- Both Prospective Husband and Prospective Wife are represented by separate and independent legal counsel of their own choosing.
- Both Prospective Husband and Prospective Wife have separate income and assets to independently provide for their own respective financial needs.
- This agreement constitutes the entire agreement of the parties and may be modified only in a writing executed by both Prospective Husband and Prospective Wife.
- In the event it is determined that a provision of this agreement is invalid because it is contrary to applicable law, that provision is deemed separable from the rest of the agreement, such that the remainder of the agreement remains valid and enforceable.
- This agreement is made in accordance with the laws of the state of ___, and any dispute regarding its enforcement will be resolved by reference to the laws of that state.
- This agreement will take effect immediately upon the solemnization of the parties' marriage.
Signature: -s/d
Prospective Husband
Date:
Place:
Signature: -s/d
Prospective Wife
Date:
Place:
Points to Remember
- A prenup agreement is a premarital contract, which chiefly includes provisions for spousal support and division of property in case of a divorce. It falls under the umbrella of US family law.
- A prenup should always be in writing and made in a conscious state of mind.
- The conditions stated within the contract, need to be voluntarily executed. Moreover, there has to be a transparent disclosure at the time of its execution.
- It has to be executed by both parties to the contract, and not their legal representatives.
- The agreement needs to be recorded as an acknowledgment before a public notary.
- Prenup contracts are signed by people who have children/grandchildren from previous marriages. This ensures that a major chunk of their property goes to their children/grandchildren and not the spouse.
