What Should a Prenuptial Agreement Include?
July 29, 2024
Historically, couples were reluctant to create prenuptial agreements due to a negative and unromantic stigma attached to them. Nowadays, signing a prenup has become a routine thing for many couples who intend to get married—just like buying engagement rings. However, there’s still a lack of understanding of what a prenuptial agreement can and cannot include.
A prenuptial agreement is an excellent tool that can set the stage for your financial future. That, of course, if you know how to use this tool properly. At Rutkin & Wolf PLLC, our family law attorneys have been helping couples in White Plains, New York, and the surrounding areas create prenups for decades. We have seen firsthand what works and what doesn’t work, and we are ready to help you create a prenup customized to fit your couple's specific circumstances, needs, and goals,
Reasons to Create a Prenuptial Agreement While You Still Can
Creating a prenuptial agreement is not merely a precaution; it is an empowering step towards building a secure future with your soon-to-be-spouse. Here are some primary reasons to consider drafting one:
Clarity on financial matters: Establishing expectations about finances can eliminate misunderstandings later.
Protection of premarital assets: Safeguard what you’ve worked hard for before your marriage.
Peace of mind: Knowing that you have a plan in place can reduce anxiety about potential future conflicts.
In addition to the above points, here’s a list of other reasons to create a prenuptial agreement:
Protect family heirlooms or gifts received before marriage.
Clarify financial responsibilities during marriage.
Prevent disputes over property division in case of separation.
Outline how debts will be handled.
Ensure that both parties are aware of each other’s financial situations.
Facilitate smoother divorce proceedings, should they occur.
Address any business interests or partnerships.
Provide peace of mind, fostering a more trusting relationship.
Discussing these topics proactively helps couples enter into marriage with transparency.
What You Can Include in a Prenuptial Agreement
When drafting a prenup, couples have broad rights to set financial guidelines regarding their future marriage. Some of the things you can include in a prenuptial agreement include:
Disclosure of Financial Information
Transparency is critical in any relationship, especially when it comes to finances. A well-drafted prenuptial agreement typically begins with both parties fully disclosing their financial information. This disclosure might include income, expenses, assets, and liabilities. By openly sharing this information, both partners can understand the financial landscape and make informed decisions moving forward.
Premarital Assets
Premarital assets may include any property, savings, businesses, or investments owned by either partner before marriage. By clearly stating which assets are considered separate, couples can avoid disputes over ownership if their marriage were to end. Being specific in defining these assets can lead to clearer conversations about shared versus separate property.
Premarital Debts
A prenuptial agreement can specify which debts belong to each spouse, protecting one partner from being held liable for the other's financial obligations. This protection can be vital, especially if one partner has substantial debt, such as student loans or credit card debt, from their past.
Spousal Support and Waiving the Right to Alimony
Couples may agree to waive the right to receive alimony upon divorce, or they may establish a specific amount. This provision can reduce potential future conflicts regarding financial support after the marriage ends. Discussing spousal support ahead of time can promote a constructive dialogue about financial expectations.
Provisions for Children from Previous Relationships
If one or both partners have children from previous relationships, a prenup can and should contain provisions to address their needs. Such provisions may be related to inheritance rights and how financial responsibilities will be managed. Creating a space for children's needs acknowledges their importance in the broader family dynamic when starting a new marriage.
Pet Custody
In today’s world, furry friends are often considered members of the family. A prenuptial agreement can include provisions for pet custody should the marriage dissolve. This agreement can specify who gets to keep the pet and what arrangements will be made for its care.
Business Interests
For couples who own businesses, prenups can include details regarding those interests. By outlining the ownership structure and how profits or debts will be divided, both partners can protect their interests. This clarity helps maintain the business's integrity and the couple's relationship.
Estate Plan Protections
Lastly, a prenuptial agreement can incorporate provisions related to estate planning. This might include specifying how assets will be distributed upon death, ensuring that each partner's wishes are honored. Having these details ironed out in advance can significantly reduce uncertainty for the future.
What You Cannot Include in a Prenuptial Agreement
While prenuptial agreements can encompass a myriad of topics, there are certain limitations to be aware of. Below are common areas that cannot be addressed in a prenuptial agreement.
Personal Preferences
Prenuptial agreements are intended to focus on financial and legal matters, not personal preferences. For example, you cannot dictate how your partner should dress, spend their free time, or interact with family. These personal choices are subjective and fall outside the scope of a legal agreement.
Day-to-Day Household Matters
Like personal preferences, everyday household matters should not be included in a prenuptial agreement. This encompasses things like chores, meal preparation, and budgeting for groceries. Such day-to-day decisions are better left for the couple to negotiate as they establish their life together.
Child Custody and Child Support
A prenuptial agreement cannot legally dictate child custody or child support arrangements. Family courts ultimately determine these matters based on the best interests of the child at the time of divorce or separation.
Illegal Activities
Any stipulations that involve illegal activities cannot be included in a prenuptial agreement. For example, if one partner wishes to protect illicit business ventures or assets obtained through unlawful means, those provisions will not hold up in court.
Encouragement of Separation or Divorce
A prenuptial agreement cannot contain clauses that encourage divorce or separation. Any provisions that suggest or promote this outcome can render the agreement invalid. A prenuptial agreement should focus on fostering a healthy and supportive partnership.
Anything Unfair or Unjust
Lastly, prenuptial agreements should not include provisions that are deemed unfair or unjust. Courts may reject an agreement if it contains one-sided terms that disproportionately favor one partner.
Need a Prenuptial Agreement? Let’s Create One
Creating a prenup may not be the most romantic topic, but it’s a wise financial decision for everyone. If you are considering a prenup, our attorneys at Rutkin & Wolf PLLC can help you draft and negotiate an agreement that provides maximum protection and is tailored to your specific needs and objectives.
It’s better to secure your future today than to regret not doing it later. From our office in White Plains, New York, our law firm serves clients in the surrounding areas, including New Rochelle, The Bronx, and Lower Westchester County. Let’s discuss how we can help you with your prenup by scheduling a free consultation.