A prenuptial agreement (or a “prenup”) is a contract between two individuals who intend to marry. The purpose of the prenuptial agreement is to disclose all assets of both parties at the beginning of the marriage and define how the assets will be divided and characterized if the parties decide to terminate their marriage. Additionally, prenuptial agreements can also define what happens to the assets of a spouse should that spouse die prior to the other spouse.
What a Prenuptial Agreement Includes
A prenuptial agreement contains a listing of all assets and liabilities of each party. The prenuptial agreement defines what property is to be considered separate property and what property is to be considered marital property. It can also provide terms regarding whether spousal support will be paid and under what circumstances. It is important that the prenuptial agreement be signed well in advance of the wedding and with full disclosure of the assets and liabilities of each party. Finally, the prenuptial agreement determines what property and assets will be subject to division should the parties terminate their marriage. Prenuptial agreements can be simple or complex; however, it is vital to hire an experienced attorney to draft the prenuptial agreement and ensure that all legal formalities are followed in order for the prenuptial agreement to have the best chance of being enforced in court.
Why a Prenuptial Agreement is Actually Romantic
A prenuptial agreement is actually romantic because it allows the parties to have difficult conversations regarding finances, the future, and expectations should the marriage not work out. These conversations can lead the parties to better understand the financial picture of the relationship and their fiance’s financial philosophy. Many of the leading causes of divorce are related to the finances of the marriage. A prenuptial agreement spells out how the relationship will end financially and eliminates gamesmanship in the relationship.
Not getting married? No problem. A cohabitation agreement is a contract between two people who choose to live in the same house and have joint property. The most common joint property is the house. A cohabitation agreement determines the procedure for refinancing, selling, and transferring interest in the real estate. This allows the parties to have an understanding as to how the house will be treated in the event the relationship ends. If parties do not have a cohabitation agreement and cannot determine what to do with the joint real estate after the relationship ends, then one is forced to either litigate the issue in a partition action, remain obligated on the mortgage loan, or keep your name on the real estate for an indefinite amount of time. A cohabitation agreement provides clarity and closure on a relationship while allowing the parties to invest in real estate for mutual gain.
What Happens to the Cohabitation Agreement if You Get Married?
A cohabitation agreement will typically contain a provision that states that the agreement terminates upon marriage. A cohabitation agreement can be replaced by a prenuptial agreement in the event the parties intend to marry.
If you have a legal matter relating to your family or business, you can count on the legal team at Trolinger Law Offices, LLC to tailor a winning strategy to fit your circumstances and protect your interests. Contact us today to request a consultation.
The information contained in this website is provided for informational purposes only and should not be construed as legal advice on any matter.
The transmission and receipt of information contained on this website, in whole or in part, or communication with Trolinger Law Offices, LLC via the contact form or email through this website does not constitute or create an attorney-client relationship. Any information that you voluntarily disclose to us through this website will not be privileged or confidential unless or until a formal consultation is conducted with Trolinger Law Offices, LLC.