Thursday, June 28, 2012

Some considerations in Premarital agreement

In her book Weddings, Emily Post reminds some considerations in Premarital agreement:
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Disclosure
Because one person is usually giving something up by agreeing to a prenuptial contract, both the bride and the groom must fully disclose their finances to each other in advance. Most states require that the premarital agreement include separate listings that describe and show the values of each person's assets. If the couple chooses not to do this, they are preventing one partner from knowing what he or she is losing by signing the contract--and this may constitute fraud, which makes the agreement unenforceable. For this reason, and to ensure that the agreement is written correctly and legally, it is a good idea for both the bride and the groom to seek the advice of his or her own lawyer before entering into the agreement.

The Form of the Agreement
A prenuptial contract or premarital agreement must be in writing to be legally binding. It provides evidence of the terms of the agreement and demonstrates that both people understand and agree to the terms. It is generally legally binding as long as it is entered into voluntarily and without fraud and as long as it is reasonable and fair. It is not binding if a person is unfairly induced to sign the agreement or is coerced under excessive emotional pressure.

The Art of Diplomacy
It is often as difficult for those requesting a premarital contract to broach the subject as it is being asked to sign one. Again, a prenuptial contract may simply be a way of protecting assets you bring into the marriage in the (unlikely) event of divorce or death. A couple who communicates well has a head start in discussing a prenuptial contract. If you are the person requesting a premarital agreement, do so with tact, love, and honesty. Explain exactly why you are making the request and whether it affects the assets you amass as a couple (it shouldn't). Discuss the lifetime of assets you hope to build together as a couple--assets completely separate from the assets protected in the prenuptial agreement.
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