Not long ago, “Grease” singer Frankie Valli and his ex-wife Randy concluded an almost 10-year battle over the cash value of a life insurance policy they purchased while married. At issue was whether Randy was entitled to the full $400,000 since she was listed as the policy’s owner or should the money be split since it was purchased with household funds from a joint checking account.
Think how much time, anguish and money could have been saved if they had simply signed a valid prenuptial agreement long ago. Of course, like most couples planning a wedding, they probably didn’t plan to someday go through a nasty divorce. Nevertheless, life has a way of surprising us and with the statistical prevalence of divorce, it’s a good idea to be prepared just in case.
What exactly is a prenuptial agreement?
A prenuptial agreement, or premarital agreement, is a written agreement signed by a couple prior to marriage. The purpose of the agreement is to predetermine some or all of the terms of a divorce in the event the marriage goes sour.
Even if you have already said your vows, you might consider a postnuptial agreement. Another type of marital agreement, a postnuptial agreement is entered into by spouses after you are already married. As with all marital agreements, full disclosure of assets and liabilities by both parties and other contractual requirements are needed for the agreement to be enforceable.
What can we put in our marital agreement?
Despite popular belief, “prenups” are not only for the rich and famous. Business owners or individuals with assets from a previous marriage or inheritance who want to protect those assets for children or other reasons should consider a marital agreement to cover all or some of these topics:
- Future wages
- Division of assets
- Division of debt
- Trusts and inheritances
- Distribution of death benefits
- Spousal support or alimony
Let the attorneys at Peterson Law Group review your situation and discuss which options are best for you. At Peterson Law Group, we have significant experience in family law, estate planning, and business law cases. We use our experience to help you achieve the best outcome possible. To schedule a consultation, call us today at 979-703-7014.