Planning and preparing for marriage involves making a lot of decisions about the big day. This typically includes decision about centerpieces, food, music, and guests to be invited. However, decisions related to marriage are not limited to the wedding day itself. In fact, many couples find themselves thinking about the future of their finances and how they could be affected should the marriage not work out. Divorce is not something couples like to consider, especially before they are married, but considering the important role a prenuptial agreement can play is crucial for any couple in Minnesota.
While a prenup is not romantic by any means, it is about as real and as rational as a person can get with their spouse-to-be. A prenuptial agreement is all about assets and the protection of them. This legal document can better define how a couple’s new and growing assets will be treated in the event of death or divorce.
Prenuptial and postnuptial agreements – drafted after marriage — are contracts. They are signed agreements that define how you and your spouse will deal with specific assets, liabilities, properties, and financial support in the event of divorce. Since it is a contract, there are ways to invalidate it. Thus, spouses that are a party to these contracts should note their rights and the details of the documents. If something does not seem right, a term is missing, or a clause is not agreed to, one should not sign it.
Couples should also consider the role of a sunset clause and if it could benefit them. This clause acknowledges the fact that circumstances could change over time. A sunset clause states that a prenup will only be honored for a set number of years. Once this time has passed, the couple can either terminate the agreement altogether or create a new one.
The decision to enter into a prenuptial agreement is never easy. Yet, couples face this choice every day, making it a normal and important factor to consider. Those unsure of their options when it comes to drafting a prenuptial or postnuptial agreement should take the time to truly understand what they are about to enter into. Doing so could mean the difference between protecting one’s financial future and being unfairly taken advantage of in the event of divorce.
Source: MSN, “Prenups, Postnups, and Everything In Between,” Jaimie Mackey, July 7, 2017