Before tying the knot, a couple can benefit from signing a prenuptial agreement that stipulates financial expectations for the union and asset distribution terms in the event of a divorce.
The idea of discussing financial matters can seem unromantic when a wedding is around the corner. However, the benefits of couples protecting their financial interests outweigh the discomfort that might result from such a discussion.
While a prenup is supposed to be legally binding, not every document drafted by well-meaning couples is up to snuff. As such, couples should familiarize themselves with the key considerations that can help ensure that their prenup is valid and enforceable.
Full financial disclosure
Before signing a prenuptial agreement, couples should disclose their full financial circumstances. Each spouse should be aware of their spouse’s:
- Assets
- Liabilities
- Income
- Financial expectations
Financial transparency is the key to a fair agreement that’s valid, equitable and enforceable. Otherwise, a court may view the agreement as fraudulent if one party:
- Conceals significant financial information
- Undervalues their assets
- Lies about future inheritances
Having a clear and accurate picture of each person’s financial standing and future financial expectations creates a foundation of trust and fairness in the agreement.
Independent legal support
Despite the potential benefits of a prenup, spouses should not sign the agreement before understanding their rights and options. That’s why couples should have independent legal support when reviewing the document.
Suppose one party blindly signs the agreement; they can later argue that they didn’t fully understand the contract before getting into it.
Avoid coercion or duress
Spouses should know that they should not coerce their partners to enter into a prenuptial agreement if their partner doesn’t want to. A legally binding and enforceable prenup is one which both spouses have entered into voluntarily without duress.
If a spouse can prove that their spouse pressured them into signing the agreement, a court may invalidate the agreement. Coercion or being under duress can manifest as:
- Threats
- Intimidation
- Signing the document under extreme time pressure, such as right before the wedding
Couples can avoid coercion and duress by starting a conversation about the prenuptial agreement well in advance of the wedding. This way, both parties can have enough time to consider the terms with the guidance of skilled legal support.
A prenuptial agreement can serve as valuable protection for both parties in a marriage. By seeking skilled legal guidance, spouses can take the necessary steps to strengthen the legal standing of such agreements and foster trust and transparency in their relationship.
