A Prenuptial agreement, also known as a prenup, is a contract between the couple set up before the marriage, which lays out how the assets will be divided in the events of divorce or death.
Who Signs Prenups and Why?
Usually, it is seen that the couples remarrying often have children from a previous marriage as well as substantial assets. Their new spouse might also have children and property of their own. The couple, therefore, wishes to ensure that their assets go to their children and not to the partner or the partner’s children.
Even if one has detailed it in the will, the surviving spouse still has the legal right to claim half of the deceased spouse’s property. And those who have experienced marriage before are well aware that complications may arise, and they need to secure their lives and the lives of their children.
How Does a Prenup Work?
In the prenuptial agreement, each side lays out their own list of assets they own before entering into marriage. Most prenups are built on the condition that neither of the spouses will have inheritance rights on the other. It is also observed that a few couples partially waive the restrictions after some period into marriage and execute a will declaring to leave the assets to the partner despite the prenup.
Another way to leave assets to your spouse after establishing a prenup is by setting up some assets joint or mentioning the partner as a beneficiary on IRA’s, annuities, or insurance policies.
Sunset Provision
A prenuptial agreement might also include a sunset provision which mentions that the contract would expire after the couple has been married for a specific number of years.
Contact an Experienced Estate Planning Attorney
If you want further information or any help regarding prenuptial agreements, contact us right away. At Keystone Asset Protection and Estate Planning, we would be more than delighted to provide our services so that you can protect your assets and preserve your hard work.