Planning for a wedding is a joyous and sometimes stressful time. Often, couples get so wrapped up in the details of the day itself that they forget to prepare for the unexpected.
Enter the prenuptial agreement—a legal document that can help protect your assets and avoid costly divorce battles. But beware! Drafting a prenup is not without its pitfalls.
Below, we discuss five common errors in prenups, each with a “how to avoid” tip listed underneath them.
1. Failure to Disclose All Assets and Debts
Getting prenuptial agreement details right is challenging. There’s a lot to consider! Sometimes, one party fails to come clean about every debt or asset they have. This can lead to problems in the case of divorce.
How to Avoid This
Both partners need to be completely transparent about their financial situation. Share information about all assets and debts, including:
- Real estate
- Bank accounts
- Investments
- Loan repayments
2. Unfair or Unequal Terms
Another common error is including unfair or unequal terms in the prenuptial agreement. This could be anything from who manages the bank accounts to child custody provisions.
How to Avoid This
Seek advice from a reputable firm like croninlawfirm.com if the terms seem too one-sided. They will ensure each party has an equal say and the terms are reasonable and fair.
3. Improper Execution
The agreement must be executed properly to be valid. Both parties should have the opportunity to review and understand the terms of the contract before signing a prenup.
If one party is pressured into signing the agreement or if the agreement is signed without the presence of witnesses, it may be challenged and invalidated.
How to Avoid This
Give both partners enough time to review and understand the terms of the agreement. And ensure a witness is present at the signing.
4. Inadequate Legal Representation
The spouses-to-be both need their own legal representation when drafting a prenuptial agreement. Failure to do this may lead to the document being challenged and invalidated when filing for divorce.
How to Avoid This
Get your own lawyers! This ensures each party’s interests are protected.
5. Failure to Update the Agreement
After drafting a prenup, the work isn’t finished. The document must be reviewed and updated regularly to reflect changes in circumstances. If this isn’t done, the agreement can become outdated and, therefore, unenforceable.
How to Avoid This
Set a recurring calendar appointment to remind you to review and revise your prenup. Include factors like:
- Birth of children
- Changes in income
- Acquisition of new assets
Avert Disaster: Don’t Make These Errors in Prenups
Making errors in prenups is more common than most people think. And by the time the mistakes are realized (usually when divorce is on the horizon), it’s too late to make changes.
Don’t be that couple. Take the above steps to prepare your prenup in the best way possible to secure the future of you and your future spouse.
For more marriage advice, take a look at the other articles on our blog.
