What Should Your Prenuptial Agreement Cover?

There are multiple reasons to draft a prenuptial agreement. Many couples find that a prenuptial agreement is an excellent financial planning tool and that having one in place actually strengthens their marriage; this is because one of the most difficult topics in a relationship – money management and the underlying issues of yours/mine/ours – is determined months before you walk down the aisle. 

Many people assume that prenuptial agreements are for wealthy couples who wish to protect their assets. This is not the case. A prenuptial agreement is simply a road map to follow if your marriage ends in divorce; this is especially useful in the state of Connecticut, which is an “all property” state. An “all property” state is one in which all property, whether acquired before or after the marriage, or in sole or joint names, is subject to division in a divorce. This makes the division of assets more complicated than you might expect. A prenuptial agreement can be a good way to protect your financial future.

Multiple topics can be covered in your agreement, including: 

Division of Property

If you and your future spouse own property together, or individually, you may include stipulations in your prenuptial agreement for how those assets will be divided in case of divorce. This can include homes, family businesses, bank and retirement accounts and valuable collections, among other assets. You can also agree on how your property will be divided upon death; in some instances, a prenuptial agreement supersedes your will.

Alimony

In the event of a divorce, one spouse may be required to pay the other spouse alimony. In a prenuptial agreement, the amount and duration of alimony can be specified. 

Financial Responsibilities During the Marriage

This is your chance to discuss, and put down in writing, how you will handle financial responsibilities as a couple during your marriage. How will bills be split? How will you handle premarital debts? 

Conflict Resolution

You can make provisions in your prenuptial agreement for how a potential divorce will be handled. For example, your prenuptial agreement can specify whether you intend to arbitrate your divorce case. Nobody wants to make these decisions in the hopeful time leading up to a marriage but having an agreement in place can make the process much easier in the event of a split. 

Sunset Clause

You can include a provision in your prenuptial agreement that it becomes null and void if you are married for a certain number of years. This can be beneficial if your circumstances change dramatically.

Seek Professional Assistance

An experienced attorney can help you draft a prenuptial agreement and ensure that all agreements are accurate, legal, and fair to each party. Ferro, Battey & Eucalitto, LLC has years of experience handling matrimonial and family law matters in the state of Connecticut. Reach out to us today to learn more and to schedule a consultation.