What is a prenuptial agreement?
A prenuptial agreement is also known as premarital agreement or an antenuptial agreement. This type of agreement may be used by a couple to determine, prior to marriage, what each party’s rights and obligations will be in the event of divorce. Premarital agreements are governed by the Uniform Premarital Agreement Act, N.J.S.A. 37:2-31 et seq. The agreement must be in writing and it must have a statement of assets attached to it. It becomes effective upon the marriage of the parties. Premarital agreements are entered into by prospective husbands and wives before they get married. If a premarital agreement is properly drafted, then they can save the parties significant emotional and financial expense if they get divorced.
In its most basic form, a prenuptial agreement is a contract between two individuals prior to marriage. It lists all the properties, debts and financial assets each person owns and how they will be divided after the termination of the relationship. Prenuptial agreements can be simple and highly complex depending on the financial situation of the parties involved and whether or not they have children and/or grandchildren. In some states, a prenuptial agreement may also be referred to as an antenuptial agreement. Who needs a prenuptial agreement? Any individual who owns a house, a retirement plan and is contemplating marriage can be a viable candidate for a prenup. Many legal experts recommend that each of the parties involved should hire their own attorney. What is included in a prenuptial agreement? Prenuptial agreements include all types of financial assets, not just cars, boats, motorcycles, investments and real estate. For example, if you own a valuable baseball card collection, it
A prenuptial agreement, often shortened to “prenup,” is a legal agreement entered into by an engaged couple prior to being married. The prenuptial agreement provides for an agreed upon distribution of assets if the marriage ends in divorce. A similar agreement called a postnuptial agreement is signed after a couple is already married. Domestic partners may also have a cohabitation agreement. A prenuptial agreement often has what is called a “sunset” clause. This usually means that the prenuptial agreement is invalid after a certain specified time period, or after the married couple has had a child. Sunset clauses vary from state to state. If the sunset clause is ignored the prenuptial agreement is void. Some couples then construct a postnuptial agreement to change the terms of the prenuptial agreement. In the US, prenuptial agreements must meet five requirements to be binding. They must be written: oral prenups are not allowed. The signing of the prenuptial agreement must be voluntary
