A prenuptial agreement can be a way to alleviate financial concerns prior to tying the knot. This contractual arrangement can spell out the responsibilities and obligations of each party during the course of a marriage, as well as what property division and support will look like should the marriage end in divorce. While some think that a conversation about a prenuptial agreement will be incredibly uncomfortable, the reality is that many people find themselves relieved to address these issues upfront so that they can move forward, focusing on their marriage without lingering financial concerns.
That said, creating one of these agreements isn’t always as straightforward as it may seem. In fact, in many instances, costly mistakes are made that later render the agreement invalid, which could leave you in a precarious financial position moving into your post-divorce life. Therefore, it’s a good idea to educate yourself on some commonly made mistakes during the prenuptial agreement negotiation and drafting process so that you know what you need to watch out for as you strive to protect your interests.
Common issues to avoid when dealing with a prenuptial agreement
The worst outcome you can experience related to a prenuptial agreement is to later find out that it’s invalid or that it doesn’t provide for you in the way that you thought that it would. So, as you pursue a prenuptial agreement, be sure to keep the following issues in mind:
- A prenuptial agreement can be rendered invalid if it’s deemed to have been obtained on a fraudulent basis: The whole point of a prenuptial agreement is to be upfront and honest with your soon-to-be spouse about your financial positioning and your financial concerns. If one party to the agreement lied about their income, debt or overall financial positioning, and the other party relied upon those assertions to enter into the agreement, then there’s a good chance that the prenuptial agreement will be deemed invalid if challenged in court. So, be accurate, transparent and honest when negotiating your prenuptial agreement.
- The terms are wholly unfair: A prenuptial agreement should be fair, providing for both spouses in the event of divorce. If the agreement is so one-sided as to be fundamentally unfair, then that agreement isn’t going to hold up in court. So, be sure that your prenuptial agreement is created in fairness.
- Technical errors can be problematic: Your prenuptial agreement needs to be carefully drafted. If vague or ambiguous terms are used, or if the agreement lacks certain provisions, you could find yourself fighting with your spouse over key financial issues should your marriage end in divorce. You need to ensure that your agreement is carefully drafted and is comprehensive.
- Life changes can render a prenuptial agreement ineffective: Sure, you might breathe a sigh of relief after signing off on a prenuptial agreement, but a career change, the birth of children or an inheritance may change things considerably. These changes should be addressed in a postnuptial agreement, otherwise you may be beholden to an agreement that doesn’t suit your needs.
Know how to protect your interests heading into your marriage
There’s certainly a lot to think about as you prepare to head into marriage. Don’t overlook the steps you can take to protect your interests, including creating a prenuptial agreement. We know that navigating the legal landscape surrounding your marriage can be tough, though, which is why we encourage you to continue reading up on what you can do to shield your interests and seek out any support that you may need along the way.