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|Posted on May 19, 2017 at 1:10 PM|
Most people understand the reason for insurance. We spend huge chunks of income each year on life, fire, and medical insurance, and newer types of insurance such as long term care. Consider viewing a Prenuptial (or Premarital) Agreement in the same way, as a kind of insurance policy. Why?
Parties facing divorce who have such agreements in place and abide by them, have helped to insure themselves against conflict, sky-high legal bills, and dissipation of valuable assets.
Who might need a Prenuptial Agreement (PNA)? Interestingly, it is not just people with large incomes or those who own several properties. If either of the parties about to be married have been married before, or if either of the parties have children by other relationships, a PNA is a necessity. If one of the parties owns a home, business, or a financial portfolio – in other words, if that person's monetary resources considerably outweigh those of the other, a PNA is essential.
Once a couple has decided that they would like to make their relationship permanent, a discussion of finances becomes crucial. This is often difficult. Money is usually a sensitive issue in relationships and many times partners have divergent views.
Clear understanding and agreement should be reached on the management and disposition of all real estate, income streams, deferred benefits, and all other assets whether separate or community. There are several key points to keep in mind. First of all, the agreement must be deliberately conceived and completely voluntary. Full disclosure of all assets and debits is required. It must be drawn up to give each party adequate time to carefully review. It is important that the agreement be just and fair-minded in order to insure that it will not be overturned in a legal challenge. To be safe, it is a good idea to video record the execution ceremony as evidence that it was signed voluntarily by competent parties. At The Law Collaborative we help mediate, negotiate, and review Prenuptial Agreements and Post-Nuptial Agreements. Call us for more information or visit the relationship planning section of our website.
Contributor - Ty Supancic, Esq.
The Law Collaborative, APC