How to Prepare a Prenuptial Agreement

No longer just for celebrities and the ultra rich, a prenuptial is becoming a typical part of planning a wedding. It is a legally binding agreement that describes how assets will be divided between the partners, should divorce or death occur. Consider it a checks-and-balances document that ensures financial well-being for the matrimonial set.

Instructions

STEP 1: Determine whether you need a prenup. Some instances where one may be advisable include the following:

STEP 2: Open a discussion about the prenuptial agreement well in advance of the marriage date. Choose a time and a place to talk where both of you are comfortable. Be open, candid and direct. Listen to your spouse-to-be and invite ideas. Treat it as a collaborative process. Frame the whole concept of a prenup so that both parties feel they gain something from the agreement.

STEP 3: Find a good divorce or contracts lawyer to help craft a bulletproof prenuptial agreement. Be prepared to pay anywhere from a few hundred dollars to several thousand dollars for a detailed agreement involving many assets. The entire process should only take two or three weeks.

STEP 4: Detail all assets and liabilities and, if possible, any future inheritances.

STEP 5: Determine who pays any debts accumulated during the marriage.

STEP 6: Specify who gets the house(s) and how you will divide any bank accounts, insurance sums and investment income (including retirement assets)--in other words, who gets what in the event of death or divorce.

STEP 7: Note any gifts, assets and belongings that each party is bringing into the marriage.

STEP 8: Include an agreement on future alimony and spousal support before you exchange marriage vows.

STEP 9: Mention potential death benefits from life insurance, as well as how--and to whom--they will be distributed.

Overall Tips & Warnings

--Make sure to draft a prenuptial agreement that is valid in all 50 states. A lawyer can help you with this. See 323 Plan a Wedding.
--Be careful how you craft your prenuptial agreement. The judge may void documents that are written in a way that can lead to divorce (for example, an agreement that gives a party motivation to leave the marriage for financial considerations).
--Be wary of do-it-yourself online prenups. While some companies may be valid, others are fly-by-night firms that will do an inadequate job of writing up your agreement.

 

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