Prenuptial contracts are a boon to many couples, not just those who are wealthy. The right terms, structure and provisions make it easy for spouses to anticipate potential issues that may arise if they break up and divorce. Though the subject is often an unpleasant one, premarital agreements can provide a great deal of financial protection.
The prenup agreement is one that is made before marriage. Careful consideration and planning are necessary to improve enforceability. Below are common issues that can make what seems unbreakable, unenforceable in divorce.
Sadly, some people feel it is necessary to coerce, threaten or influence their partners into agreeing to their prenups. Also, the use of some medications, substances and other factors can affect one’s mental capacity to make legal decisions. Premarital contracts are legally binding but are not valid if there is a lack of mental capacity due to coercion, illness, drugs or some other issue at the time of signing.
The basis of prenuptial contracts is to mitigate financial risks. To facilitate that, the law requires all parties to fully disclose their finances and any information that may create issues in a future divorce, such as misrepresentation, the omission of assets or income, etc. All information in prenuptial agreements must be factual and honest.
Unbeneficial to both parties
Good prenuptial agreements require both parties to negotiate. It is not unusual for some partners to place more importance on their feelings at the time and sign their contracts without really reviewing them or negotiating for a more favorable arrangement. Premarital agreements that are benefit heavy for one partner and primarily puts the other spouse at a disadvantage in the divorce are not enforceable. Valid prenup contracts are enforceable when they are mutually beneficial to both spouses.