In our previous post, we addressed whether or not you should enter into a prenuptial agreement. In this post, we’ll assume you have decided with your partner to execute a prenuptial agreement and discuss terms and considerations.
Each party to a prenuptial agreement should have their own attorney and be separately advised as to the terms. You are entering into a legally binding contract and should be aware of what you are signing.
Reasons for Separate Attorneys
- There may be areas of disagreement that need to be negotiated.
- It can aid in enforceability of the agreement as it could not later reasonably be claimed by one party they did not know what they were signing or they were coerced into signing.
What is Covered?
Anything and everything relating to finances and property. I’ve drafted prenuptial agreements that only addressed ownership of a business that the owner did not want to get entangled in a divorce should that come to pass. Agreements can also address future business interests, for instance for the owner of a venture capital firm that routinely establishes new corporate entities. It is common for a prenuptial agreement to stipulate that the assets each party brings to the marriage shall remain theirs, but that assets (and debts) accumulated during the marriage shall be equally divided. Overall, the scope and terms of a prenuptial agreement are dictated by the parties. Keep in mind that full disclosure as to the assets covered by the prenuptial agreement is critical to future enforceability of the agreement.
Typically one party’s attorney will take the lead on drafting the agreement. The draft is then shared with the other attorney who may make revisions. During the drafting process, each party to the prenuptial agreement is advised as to terms and negotiations, which can be brief or lengthy. Ultimately a final version of the prenuptial agreement is agreed upon.
Once the final draft is complete, your attorney should review every sentence of the agreement with you to ensure that you fully comprehend each provision of the agreement before signing.
For additional information concerning prenuptial agreements and all family law matters, please go to our discussion of prenuptial agreements and feel free to call us at (317) 353-3600 or click here to contact us via email if you have any questions.