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Critical Facts About Prenuptial Agreements

by Erika Reed

Marriages are unique partnerships because couples tie the knot with the person they love, cherish, and want to spend the rest of their lives with. Although marriage has nothing to do with material possession, it would be naïve to throw all caution to the wind, particularly if you have substantial assets. It is the reason why a prenuptial agreement is crucial. Although some people opine that premarital agreements ruin marriages, family law solicitors and counsellors agree that the accords do more good than harm. For instance, a prenuptial agreement ensures that a stay at home partner is well compensated in the event of divorce.

Here are crucial facts that you need to know before signing a prenuptial agreement

Full Disclosure

The most fundamental aspect that gives a prenuptial agreement power is full disclosure regarding assets. Both parties must disclose how much they are worth or else the agreement will be deemed null and void by a court of law. Notably, full disclosure involves looking at both parties' status and the likelihood of acquiring substantial wealth in the future. For instance, if you are likely to inherit wealth from your parents or relative, you must disclose the information before signing on the dotted line.  

Fairness Is Subjective to Circumstances

A prenuptial agreement is in most cases considered a fair document since it allows both parties to walk away with their premarital wealth intact. Therefore, if you are worth $1million and your partner $5 million, both of you will get the respective premarital wealth. However, circumstances dictate what is fair and what is not. For example, would it be appropriate for you to walk away with only $1 million after 30 years of marriage? Probably not. Therefore, a prenuptial agreement should indicate how much alimony a partner should receive if the marriage ends in divorce after a specific duration. Typically, the partner with more wealth calls the shots in this regard.

Children Are Off Limits

You cannot use a prenuptial agreement to set how much child support you will provide or impose limits on your kids' rights. Courts and lawyers are not in the business of letting partners bargain away the rights of their children. If they did, children would be left at the mercy of tussling parents. Therefore, remember that children are entirely off the table when entering into a premarital agreement. A prenup that includes an agreement to limit child support is considered null and void.  

For more insight, contact family law solicitors.