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815 Orienta Ave. Suite 1030 Altamonte Springs, FL 32701
Planning a wedding involves countless decisions, from choosing the venue to selecting the perfect flowers. But there's one conversation many couples avoid: discussing a prenuptial agreement. While it may not be the most romantic topic, a well-crafted prenup can protect both partners and provide peace of mind as you begin your marriage.
A prenuptial agreement is a legal contract signed before marriage that outlines how assets, debts, and other financial matters will be handled during the marriage and in the event of divorce or death. Far from being a sign of distrust, a prenup demonstrates mature financial planning and open communication between partners.
Understanding what to include in your prenuptial agreement ensures you're making informed decisions that protect your interests while strengthening your relationship. Let's explore the essential components that should be part of your prenup.
One of the primary purposes of a prenuptial agreement is to clearly define what happens to your assets. This section should address both separate and marital property to avoid confusion later.
Separate Property
Your prenup should list assets you owned before marriage that will remain yours alone. This includes:
Marital Property
The agreement should specify how assets acquired during marriage will be treated. You might choose to keep everything separate, share certain purchases, or follow your state's default property division laws.
Appreciation of Assets
Consider addressing whether the appreciation of separate property during marriage remains separate or becomes marital property. For example, if your pre-marital home increases in value, will your spouse have any claim to that appreciation?
Money problems are a leading cause of marital stress, making debt allocation crucial in your prenup.
Pre-Marital Debts
Clearly state that each spouse remains responsible for debts they brought into the marriage. This protects you from becoming liable for your partner's student loans, credit card debt, or other financial obligations.
Future Debts
Establish guidelines for how debts incurred during marriage will be handled. You might agree that:
Your prenuptial agreement can address whether either spouse will receive alimony in case of divorce and under what circumstances.
Duration and Amount
You can specify the amount and duration of spousal support based on factors like:
Waiver of Support
Some couples choose to waive spousal support entirely, though courts may review such waivers to ensure they're fair and reasonable.
If either spouse owns a business or professional practice, your prenup should protect these interests.
Business Ownership
Clearly state that business interests remain separate property. This prevents your spouse from claiming ownership in your company during divorce proceedings.
Income from Business
Decide whether income generated from separate business interests during marriage will be considered separate or marital property.
Professional Licenses and Degrees
Some states consider professional licenses and advanced degrees as marital assets. Your prenup can address how these will be treated.
Your prenuptial agreement should coordinate with your estate planning goals, especially if you have children from previous relationships.
Inheritance Rights
You can specify what each spouse will inherit and ensure certain assets pass to children from previous marriages.
Life Insurance
Consider requiring life insurance policies to protect surviving family members and ensure obligations are met.
Estate Planning Updates
Include provisions requiring both spouses to update their estate planning documents to reflect the prenup terms.
For your prenuptial agreement to be enforceable, it must meet specific legal requirements.
Full Financial Disclosure
Both parties must provide complete and honest disclosure of their assets, debts, and income. Hiding assets can invalidate the entire agreement.
Independent Legal Representation
Each spouse should have their own attorney to ensure the agreement is fair and their interests are protected.
Voluntary Agreement
The prenup must be signed voluntarily without coercion or duress. Presenting the agreement too close to the wedding date can be problematic.
Fair and Reasonable Terms
Courts may refuse to enforce agreements that are extremely unfair or leave one spouse destitute.
Certain matters cannot be addressed in prenuptial agreements:
Creating a prenuptial agreement requires honest communication and careful consideration of your shared future. While these conversations may feel uncomfortable, they often strengthen relationships by encouraging transparency about financial goals and expectations.
Remember that prenups can be modified or revoked after marriage through postnuptial agreements, provided both spouses agree to the changes.
If you need help with family law practice in Orlando, FL, contact Frank Family Law today to schedule a consultation. Our experienced attorneys can guide you through the prenuptial agreement process, ensuring your interests are protected while maintaining the collaborative spirit essential to your marriage's success.