When it comes to divorce, a good prenuptial contract can help keep down confusion, aggression and make it easier to get through the process faster. A poorly written prenup can create challenges that take time and financial and legal resources to resolve. A bad prenuptial contract can also contribute to an unfavorable divorce outcome. Just like any other legally-binding contract, the strength of the prenuptial agreement lies in its enforceability.
The prenup is an arrangement that outlines the wishes of both spouses should their relationship end in separation or divorce. It can even provide instructions about marital assets if a spouse dies. Prenuptial agreements are particularly useful when there are concerns over inheritances, expensive assets, etc. Enforceable prenuptial agreements must include the following two elements.
Financial disclosure
Partners entering into prenuptial agreements must provide a full and honest accounting of their financial profile, habits and assets. Though this is often done during the discovery process, including this information in a prenup can help the separating couples and the courts identify and divide marital assets fairly and quickly.
Legal counsel
Before entering a premarital agreement, spouses should seek legal counsel for guidance. The laws regarding marriage dissolutions and marital property are not easy to understand. Many couples have their legal counsel review and negotiate more favorable terms.
Some couples find the mere thought of prenuptial contracts disturbing and unpleasant. It may seem to contemplate issues that commonly come up during divorce. However, anticipating and including provisions for them in the premarital agreement can help make the separation process, should it ever occur, easier to manage.