Some people are offended by the idea of a prenuptial agreement or think it’s distasteful. Of course, discussing the topic is awkward and certainly not romantic.
But putting aside those thoughts, prenuptial agreements serve a very practical purpose.
And they are not just for the wealthy.
If drafted properly, these agreements clarify the financial responsibilities of each party during the marriage as well as govern the distribution of any and all property in the event of divorce or death of one the spouses.
Death benefits as part of life insurance policies and the right of a spouse to participate under a retirement plan are often topics covered in a prenuptial agreement.
Prenuptial agreements may set forth an alimony schedule or eliminate spousal support altogether.
These agreements can also determine how property will be passed on to children from a previous marriage.
But there are certain areas that are out out of bounds. For example, prenuptial agreements cannot cover the care, custody or visitation of children. In addition, the right of a child to support from a parent cannot be adversely affected by the terms of a premarital agreement. Finally, no provsions may be in violation of public policy or of a statute imposing a criminal penalty.
To avoid extensive and expensive divorce litigation consider a prenuptial agreement.