Why make a Pre nuptial Agreement

Pre nuptial Agreement
It is an agreement between two people that deals with the financial consequences of their marriage ending.

Why customized

It is known as divorce law. However, a lot of people are unhappy with the way divorce law works, and prefer to take control of their lives, rather than leave it in the hands of the government. In these cases, it makes a lot of sense to get a customized prenup.Why getting a prenuptial agreement 

Getting a prenuptial agreement is particularly important in following circumstances

• One is much wealthier than partner
It can ensure that a partner is marrying you for who you are, and not for money.

• One earn much more than partner
It can be used in many states to limit the amount of alimony that is payable.

• Remarrying.
It can ensure that when one passes away, the assets are distributed according to one’s wishes, and that neither ones’ first family, nor new family are cut off.

• A partner has a high debt load.
It can help ensure that a spouse wont share his/her partner’s debts

• One own part of a business.
It can ensure that a spouse does not become an unwanted partner in one’s business.

• To prevent spouse from overturning One’s estate plan.

A pre-nuptial agreement can ensure that one’s estate plan works, and, for instance, ensure that a specific heirloom remains in one’s family.

• One is much poorer t han his/her partner
It can also be used to ensure that the partner who is weaker financially is protected.

• If one plan to quit job to raise children.
A prenuptial agreement can ensure that the financial burden of raising the children is shared fairly by both partners.

• Divorce is Easier
Divorce proceedings are easier when a prenuptial agreement has been signed. A pre-marital agreement often specifies how possessions will be divided. This makes it less likely that one will have to go through a long, messy divorce to hash out those details. This is a benefit because a divorce may be an emotionally taxing time. If the divorce is fast, it can also save money on lawyer fees. In this way, a prenuptial agreement can benefit anyone who signs one.

• Reduce Misunderstandings
Arranging a prenuptial contract can encourage an honest discussion about how money will be shared within the marriage. This will reduce potential arguments that may arise after the marriage ceremony. Also, once the agreement is signed, it can eliminate any worries that money or possessions are the true motivator of one or both parties

UK law
Prenuptial agreements have been recognised as enforceable under British divorce law for the first time, in a supreme court ruling today. By ruling that such contracts are legally binding, the Supreme Court has altered the landscape of divorce settlements.

Contents
• Definition
• Why important
• Circumstances when important
• Divorce is easy
• Reduce misunderstanding

What is Prenuptial Agreement?

Prenuptial Agreement

It is also called an premarital agreement, a written contract between two people who are about to marry, setting out the terms of possession of assets, treatment of future earnings, control of the property of each, and potential division if the marriage is later dissolved.

Fairly common
These agreements are fairly common if either or both parties have substantial assets, children from a prior marriage, potential inheritances, high incomes, or have been “taken” by a previous spouse.

Content can be vary

Content can be vary widely, but commonly includes provisions for division of property and spousal support in the event of divorce or breakup of marriage.

UK law
Prenuptial agreement have not traditionally been enforced in divorce law in England. A divorce lawyer is often asked about the possibility of making a prenuptial agreement before entering into a marriage.

The normal reason for asking is that at least one of the parties to the intended marriage wishes to preserve previously acquired assets from the jurisdiction of the divorce courts. Unfortunately, the answer in almost all cases is that the jurisdiction of the divorce courts cannot be ousted in this way and that a pre-nuptial agreement is hardly worth the paper it is written on.

Why it is not the worth in English law
In order to understand why this is so one has to realise that the tradition of the English divorce courts is to look at all the assets of the marriage at the time of the divorce and to distribute and in whatever way they see fit and accordance with the perceived needs of the parties and of any children. This is done in accordance with certain principles laid down by statute and case law but nevertheless this is the basic outlook of English divorce law when it comes to regulating financial matters between the parties.

Benefits
Making a prenup can:
• Protect separate property
• Support  estate plan
• Define what property is considered marital or community property
• Reduce conflicts and save money if one divorce
• Clarify special agreements between one, and
• Establish procedures and ground rules for deciding future matters

Sunset” clause
It often has what is called a “sunset” clause. This usually means that that it becomes 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 agreement is void. Some couples then construct a pre-nuptial agreement to change the terms of their marital agreement.

Requirements
It must meet these requirements to be binding.
• They must be written
• The signing of the agreement must be voluntary on behalf of both parties,
• It can be invalid if one partner fails to disclose something important, and marries under false pretenses.
• The agreement cannot be morally or ethically unconscionable.

Contents
Pre nup definition
Benefits
Requirements
Sun clause

 

Prenuptial Agreement Protect Premarital Assets

Why agreement is required

When a couple take the step of living together, whether this is with a view to marriage or long term cohabitation, it is important that steps are taken to protect assets which are being brought into the relationship and to define what will happen to those assets in the unfortunate event that the relationship subsequently breaks down.

Exclude liabilities
Pre nuptial agreement will protect all current and future assets. It excludes the liabilities of the parties towards each other and the asset of the parties earned before or after the marriage will remain the sole property of the individual party. If the parties do not prefer to enter into pre nuptial agreement, the assets will be divided on the equal basis.

Implication for Ireland
When determining what awards to make in relation to the division of assets on a judicial separation or a divorce the Irish Courts are bound by the requirement that they make “proper provision for both spouses” out of the assets of the couple. This requirement arises out of the special protection afforded to the institution of marriage by the Irish constition.

Inventory of assets
Under the proposed agreement, a couple would complete an inventory of assets each person held before the marriage and agree that in the event of a divorce, each would be entitled to keep those original assets.

However, any new assets acquired during the course of the marriage, such as improvements or additions to the farm, would be divided between the couple.

Protects Inheritances
Prenups can ensure that any inherited money, property or assets will stay within the family. Protecting an inheritance is the primary reason middle-aged people with children are likely to enter into a prenuptial agreement. prenup can give peace of mind to children or other family members who worry about being effectively disinherited in the event of divorce.

Protects from Spouse’s Debt

When divorcing, marital assets are not the only thing that must be divided: marital debt is divided as well. If one spouse incurred substantial debts before or during the marriage–while starting a new business, for example–in some circumstances, it may be unfair to hold the other spouse partially responsible for the repayment of the debt upon divorce. A prenup can determine who shall be responsible for debts incurred before or during the marriage.

Substantial protection and benefits of filing joint marital tax
Although it provides substantial protection for the Prospective Husband and the Prospective Wife’s separate property, it also allows the couple to avail themselves of the benefits of filing joint marital tax returns during the course of the marriage without creating the presumption that income from the respective parties has become marital/community property.

Contents
• Exclude liabilities
• Protection of assets and benefits of tax returns
• Protection from spouse debts
• Protect inheritance
• Inventory of assets

Reason to buy from Net Lawman
The premarital agreement from Net Lawman provides you a comprehensive range of agreements that save your time and can be amended accordingly as and when required.