10 Things You Must Include in a Prenuptial Agreement

Getting married is a huge and exciting milestone that many people look forward to. However, preparing for a marriage can be challenging, as couples need to do a lot before saying their vows. In the chaos and preparation for marriage, many couples forget to sign a prenuptial agreement or contact a family lawyer to ensure that their existing prenuptial agreement is legally valid. A prenuptial agreement, also called a premarital agreement, refers to a written contract drafted by a couple before getting married.

 

The entire purpose of a prenuptial agreement is to discuss the living arrangements and financial conditions of both partners after marriage. It protects the assets and financial rights of both spouses and clarifies their responsibilities in a marriage. Additionally, the prenuptial agreement also prevents fights over the division of assets in the case of divorce. Contrary to popular belief, prenuptial agreements aren’t only for the wealthy; couples from all financial backgrounds need to sign a premarital agreement to prevent issues in their marriage later on.

 

This article discusses some things couples need to add to a prenuptial agreement.

 

The Entire Information of Spouses

Like any legal contract or document, a prenuptial agreement should include both spouses' full legal names. It should also state the current home addresses of both parties entering a prenuptial agreement. If the name or address is incorrect, the prenuptial agreement can be declared invalid by the family court.

Separate Premarital Assets

One of the most important things to add to a prenuptial agreement is the separate premarital assets of both parties. This protects the assets of both partners, ensuring that they’re the sole owners of any property they don’t want to share with the other spouse after marriage. These assets can include family heirlooms, any properties purchased, vehicles, etc.

 

Including personal assets in the prenuptial agreement ensures that you won’t have to divide them with your partner if you both decide to get a divorce. Additionally, it’s essential to protect the financial rights of both partners, especially if one has more assets than the other.

 

Separate Premarital Debts

Besides stating the separate premarital assets of both parties, a premarital agreement also needs to include the premarital debt of both spouses. If one partner has a lot of debt or liabilities when tying the knot, they must include it in the prenuptial agreement. Only the indebted party will be responsible for paying off the loans. This will separate the debt from the joint household bills, ensuring that one partner’s liabilities don’t impact the other’s finances.

Joint Assets and Liabilities

Once both parties have mentioned their separate debts and assets in a prenuptial agreement, they also have to add the joint assets and debts they’ll be handling in their marriage. The assets include any property that a couple has purchased together, jewelry, furniture, vehicles, retirement accounts, investments, or any other expensive purchase. But you must remember that these joint financial assets will be divided between both parties in the case of a divorce.

 

Therefore, refrain from adding anything that you want to own entirely. You can also specify who’ll get which joint asset during a divorce. Besides including assets, you can also include financial liabilities and help pay off your partner's debt. These joint debts can include mortgages, household bills, or your children’s student loans. Like assets, the debts will also be divided equally in the case of a divorce, and you’ll both have to pay off the remaining mortgage or any other loan.

 

Clarifying the Right to Spousal Support

In the case of a divorce, the court might ask the higher-earning and financially stable partner to pay alimony or financial support to the partner who doesn’t earn enough to meet their needs. However, if both parties don’t want alimony or spousal support after divorce, they can add it to the prenuptial agreement.

 

They can specify a low amount the lower-earning partner will get or remove the right to alimony entirely in the prenuptial agreement. But, you must remember that a family court might deem this clause invalid if it seems unfair to the lower-earning partner. It’s essential to consult a family lawyer to ensure that you can include this term in your prenuptial agreement.

 

Children from Previous Relationships

Another important aspect that couples need to add in a prenuptial agreement is stating the number of children that both partners have from any previous marriages or relationships. Couples who have children from previous relationships and want them to live with their new partner must specify these details. These details include the financial rights of those children.

 

The couple can specify if the child’s legal partner will pay for the children’s needs or if the financial provision will be the responsibility of both partners. In the same way, it also protects the financial rights of children in the case of divorce or the death of their legal parent. A premarital agreement specifies what assets a child will receive if their parent passes away. It also discusses if the other partner will be responsible for their step-children’s financial provision in the case of their legal parent’s death.

 

Responsibilities After Marriage

Many partners make the mistake of not having a detailed conversation and agreement about their responsibilities after marriage before tying the knot. A prenuptial agreement allows them to state their responsibilities and expectations from the other partner. You can determine who’ll pay the household bills, file tax returns, and handle the investments.

 

Additionally, you can determine how the joint credit and debit will be managed and who’ll have access to the money in savings accounts. However, you need to remember that you can only specify financial responsibilities. A prenuptial agreement doesn’t usually discuss the non-financial aspects of marriage responsibilities, like the division of household work.

Confidentiality Clause

In many cases, one partner asks the other partner to refrain from discussing things about their marriage with third parties. The confidentiality clause is an essential element of celebrity marriages, where both partners aren’t allowed to discuss their marriage in front of the press or other people in the industry. In the case of marriage, where one partner is well-known, they can also specify what the other person can and can’t say about them in public.

 

Even if a couple isn’t well-known, they can keep their marital life confidential by adding this clause to their prenuptial agreement. Couples can also define a penalty if their partner refuses to abide by the confidentiality clause. This clause in the premarital agreement prevents third-party interference.

 

Expectations Regarding Work and Income

Even though partners can’t state non-financial responsibilities in their premarital agreement, they can discuss their expectations and plans regarding their careers and expenses. For instance, you can state if one partner will stay at home after marriage or after a couple has kids.

 

Additionally, a couple can determine what will happen in several situations, like one party getting a job in a different city or country. In this case, one partner can prevent their partner from taking that job and relocating by mentioning it in the prenuptial agreement beforehand. A couple can also specify which partner will spend how much of their income on household expenses.

Signatures of Both Partners

Since a prenuptial agreement is considered a legal contract, both partners are supposed to review it once it’s drafted and add their signatures if they agree with it. Once you and your partner have signed and dated it, one or two witnesses or your family lawyer will have to notarize it by signing it.

 

Considering Signing a Prenuptial Agreement? Hire a Family Lawyer

With the help of a prenuptial agreement, you and your partner can start a married life where all financial aspects are discussed and clarified beforehand. Therefore, it’s advisable to hire a family lawyer to help you create or amend a prenuptial agreement. Nanda & Associate Lawyers has professional family law lawyers in Canada that can help you create a valid prenuptial agreement.

 

Their legal advice and representation can ensure that both parties agree upon a prenuptial contract that benefits them and their married life. These family lawyers have in-depth knowledge of family law, ensuring that the terms you add are authorized by the law.

 

Additionally, their team also includes divorce lawyers that make the separation process easier and quicker. These divorce lawyers help couples divide assets and reach the same page regarding child custody. Nanda & Associate Lawyers also has immigration consultants in Canada that help with spousal sponsorship, Canadian work visa, refugee applications, permanent residence applications, and more.

 

Book a consultation session with them for more information about their family law services or hire a family law lawyer to help you and your partner draft and sign a prenuptial agreement.

 

Disclaimer: This article is only intended for educational purposes and shouldn’t be used as a substitute for legal advice.