If you are getting married soon, you and your partner may have plans to create a prenuptial agreement. A recent survey conducted by the American Academy of Matrimonial Lawyers found that of the lawyers polled, 62% had seen the demand for prenuptial agreements rise over the past three years.
There are distinctions about what you can and cannot include in a prenuptial agreement. These are a few of the items you can and should include in this legal document.
1. Distinctions about property
In the event of divorce or death, the court will divide your martial property according to the law. With a prenuptial agreement, you can prevent the court from deciding what will happen to your belongings that you attain during marriage and retain control.
2. Directions for property division
There are laws that dictate who gets what property during the divorce process. But with a prenuptial agreement, you can often bypass these stipulations.
In addition to dividing assets, you can determine who will become responsible for which debts in the event of divorce. Even if your spouse is the only debtor, creditors can still go after you for unpaid debts if they consider them marital property.
3. Descriptions about spousal responsibilities
You can dictate how you will manage your finances during marriage in a prenuptial agreement. For example, you can denote how you will manage household bills and expenses, joint bank accounts, credit card spending and payments, savings contributions and school expenses. You can also determine how you will handle separate businesses, retirement benefits and the distribution of life insurance.