Terms of a Prenuptial Agreement

A prenuptial agreement is a contract between an unmarried couple that sets the terms of the division of their assets in the event of death or divorce. The agreement preemptively arranges what the post-nuptial contract will look like when the couple enters a marriage relationship.

The laws of prenuptial agreements may vary in each state and consider the time, date, and venue of the marriage to pass a verdict on the enforcement and validity of their relationship.

Couples are advised to turn to the state laws when arranging or signing their prenuptial agreement. Here are the terms of the agreement that need to be considered.

Fairness

There can’t be an agreement if the parties are not practicing full disclosure. Confidentiality is not the best virtue when setting the terms of the agreement. Both partners need to be honest and fair about the assets that they own so that their attorneys can arrange the division of those assets.

Circumstantial Adjustments

While fairness and full disclosure are required, the circumstances at the time of death or divorce are also factored in. If the wife wants to take full custody of the kids and her share of the assets is not fulfilling their expenses, the terms set at the time of the agreement need to account for the circumstances. So circumstantial adjustments to the terms matter as much as fairness at the time of disclosing your financials.

Premarital Assets Are Off Limits

When disclosing and dividing the assets, it’s essential that the premarital assets that each partner brings into the marriage stay off-limits. Prenuptial agreements only account for shared assets or assets acquired during the marriage which are subject to marital division. This maintains fairness when the assets are divided if one of the partners had a significantly higher financial standing before the marriage. However, the couple is free to decide their own terms if they agree otherwise.

Alimony

Most agreements waive alimony or neglect the terms of it altogether. If the condition is waived, one party can’t seek alimony from the other in case the couple decides to part ways. Not discussing this before the agreement is signed can create problems later on for a seamless divorce.

The attorneys at Wembley Solicitors have helped countless couples manage their assets, distribute their finances, wills, and trusts through prenuptial agreements. We can help you decide the terms of the prenuptial agreement in London. Speak to us at 020 3417 3700 today.