Prenuptial agreements have gained popularity over the years. The misconception that this agreement means you expect to divorce is becoming a thing of the past. Soon-to-be spouses in all 50 states are hopping on the prenup train. You may be interested in completing your own, but you’re not sure where to start. What should you put in a prenup?
What is a prenuptial agreement?
A prenuptial agreement is a contract couples agree to before they get married. In the event of a divorce, the contract outlines you and your spouse’s financial rights. Alimony and property division are both issues addressed.
Although this isn’t a fun topic to discuss with your significant other, the benefits of having a prenup can outweigh the initial awkwardness. People who own assets before marriage, have children from a previous marriage or have business interests all need a prenuptial agreement. If you aren’t in a similar situation, you can still use a prenup to protect other things such as a savings account or car purchased before the vows.
What should be in a prenup?
In Florida, couples can put anything in a prenup if it doesn’t violate the law or public policy. Prenups mainly outline each spouse’s entitlements or obligations during – or after – a marriage. Normally, prenups will clarify questions on certain issues, such as:
- Who manages the property during the marriage?
- How is property divided in the event of divorce or death?
- Who pays alimony in the event of a divorce?
- What happens to the retirement plan?
Most prenups follow a set of guidelines and cover universal issues. You and your potential spouse will each want to gather an accurate list of your assets and liabilities. This will be disclosed in the agreement and create financial security on both sides.
Additionally, if you received any type of inheritance before the marriage, you will want to make sure that’s covered in the agreement. If you already have children, or plan on having children, it would also be helpful to clarify who will support the household.
Life offers moments of unpredictability. A thorough prenup ensures you and your spouse are covered during or after a marriage. It’s best to always stay prepared in case of changes.