Without Prenup, creditors can sue marital property while only one spouse is the debtor. To avoid this, limit your debt liability in a marital agreement. A marriage agreement is nothing more or less than a contract between two people. It defines the assets and liabilities that each party brings to the marriage and determines the property rights of each party for the duration of the marriage, and whether that marriage ends in divorce. Marital agreements may also come into play after the death of a spouse, to ensure that their property rights and interests are protected even after their loss. If you have significant assets, hire an estate planning lawyer to make a marriage pact. It is also important to put in place your other estate planning documents, such as wills, trusts, health care authorities and guidelines. In short, a marriage is simply an alternative estate planning tool that can be used to protect the financial interests of the couple and their heirs. Couples considering marriage may also use a preliminary contract to decide what happens to the property they receive during the marriage if they decide to end their relationship. There is a widespread misunderstanding about pre-marriage arrangements, and that is that they are some kind of legal weapon to be used by wealthy couples in divorce proceedings. While divorces from top celebrities can reinforce this idea, the truth is a little more prosaic. For a marriage to be a binding legal contract, it must be prepared by a lawyer experienced in matrimonial law and with knowledge of the laws on marriage contracts in your state. Ideally, you should have an independent board so that your interests are fully and fairly defended.
All marital agreements are closely reviewed by the courts and the presence of an independent counsel for each party indicates that the contract is fair and that both parties have entered into the agreement in good faith and with appropriate legal representation. Having separate lawyers also helps to avoid any misunderstandings or misunderstandings that may occur during the design process, and to ensure that you are both satisfied and satisfied with the final agreement. Now that you have a better idea of whether a marital agreement suits you or not, it`s time to delve a little deeper and learn what can and cannot be included in your pre-marital contract. Here too, many people mistakenly think of marital agreements as a weapon that can be used in divorce proceedings. But there are strict rules on what may or may not be included in a pre-marital contract, and non-compliance with these rules can lead to the contract being concluded if challenged in court. Congratulations on your commitment! I am happy to hear that you are thinking about a marriage agreement, because not many people do. Although Justin and Hailey are young and in love – and all precautions are taken in the wind – no one with significant assets should follow their example. Here are 10 things everyone should know about marital agreements.