A prenup is a legal agreement made between an unmarried couple that deals with the division of their worth and assets in case of a divorce or death after the marriage. To every couple going to get married, we have brought 5 essential things they need to know about Prenups before the marriage takes place. Let’s get started:
- In a prenup agreement, each party has to disclose their net and total worth and assets in the form of a legal document. There is no hiding from it. Each party should sit down with their lawyers and get everything sorted before signing the document. There was once a time when only the rich and famous people used to take advantage of prenups, but nowadays, it’s like a must to have an agreement before every marriage. If you don’t disclose your total assets in the prenup, the court will file a hefty penalty on you in case of a divorce.
- Prenups help in keeping your property separated, but that doesn’t imply that you don’t trust each other with your belongings. For a stable financial condition, it is fruitful for both the partners to take the accountability of their properties and make a blueprint of the future. A prenup will give both of you an idea about your present net worth and with this idea in place, you can invest the money more accurately to generate more of it. Point of Law can give you a detailed idea about how a prenup can help you become financially independent.
- There are certain limitations of a prenup agreement as well. Signing a prenup doesn’t give you automatic custody of your children after a divorce. Just like that, a prenup can not have any clause in it that can promote divorce or separation. Please keep in mind that prenup is not about segregation. It is about individuality in the marriage. You can split the household charges and mention it in the agreement but can not indicate that you’d take divorce if something terrible happens.
- Every couple doesn’t have to sign a prenup agreement before marriage. Common sense tells that the first time married couples need not to sign it unless one of them or both are rich and have a lot of properties. However, for the people who are getting married for the second time and have children in the equation are strongly advised to reach an agreement made and signed before the marriage.
- Usually, prenups are very expensive. They can cost you anywhere from $2000 to $30000- depending on your net worth and the lawyers’ fees. If you are super-rich, it wouldn’t be a problem. However, if you don’t want to spend a large amount of money, you should take help from Point of Law because they are quite reasonable with their service charges.
We hope that all of your doubts have been cleared about what a prenup is and why is it essential. We will be coming up with such informative articles regularly. Stay connected with us!