More marriages in the U.S. are standing the test of time, due in part to more mature couples electing to document their pre marriage financial situations in prenuptial agreements. According to the Associated Press and several major news outlets, a recent report by US health officials announced on May 4, 2007 that the U.S. divorce rate has fallen to the lowest level since 1970. With Americans getting married later in life and more two professional households than ever before, perhaps this should not come as a surprise.
Prenuptial Agreement Basics
A Prenuptial (or Premarital) Agreement is an agreement between prospective spouses, made in contemplation of marriage. The Prenuptial Agreement becomes effective upon marriage. The Prenuptial Agreement should be discussed by the couple well in advance of the marriage. Sufficient time should be permitted to allow both spouses to consult their separate legal counsel and to sufficiently consider the Premarital Agreement. Otherwise, one party may later claim that the Premarital Agreement is unenforceable because it was misleading or signed under pressure. The Prenuptial Agreement is generally unenforceable if it was signed after the marriage ceremony.
Why do smart couples make Prenups together?
Increasingly, women and men are marrying later in life, after each prospective spouse has started a career. So, it stands to reason that professional women and men have each accumulated assets and debts of their own, prior to the relationship and marriage. Smart couples talk to each other candidly about their finances and these are the types of people who may rationally commit to care for the financial health of their marriage as they care for each other and their other family members during the marriage.
What does a Prenuptial Agreement do?
From a legal perspective, marriage can be compared to a business arrangement. Business transactions should not be entered into without documenting the terms of the arrangement in writing. Likewise, a couple considering marriage should carefully think about how financial issues will be handled during and/or after a marriage. Without a Prenuptial Agreement, the probate court (upon death) or the divorce court will impose an agreement on the parties in those circumstances.
A number of issues can be clarified in a Premarital Agreement pertaining to property rights. For example, the Prenuptial Agreement can specify how property — previously owned or acquired during the marriage — will be distributed upon divorce or death. Other items which may be addressed include:
- The handling of debts and expenses;
- Rights to inherit from each other;
- Rights to be named as the beneficiary of life insurance or retirement plans; and
- Any other matter regarding the spouses’ rights and obligations, as long as the agreement does not violate public policy concepts or criminal laws.
Interested in making a Premarital Agreement? You can take a free Prenuptial Agreement interview online at RocketLawyer.com.
Note – certain types of agreements may be invalid
Certain Premarital Agreement provisions may not be enforceable, such as provisions relieving one spouse from paying child support or alimony. State law or public policy may prevent a court from enforcing such provisions. Because of differences between the states, the drafting of such provisions should be done in consultation with a lawyer.
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