Is a prenuptial agreement helpful to soon-to-marry partners?

On Behalf of | Sep 27, 2021 | Property Distribution |

Marriage comes with responsibilities, and one task involves planning for the union’s potential dissolution. Persons entering into a second marriage likely understand the possibilities, which is why they may insist on a prenuptial agreement. Someone marrying for the first time in North Carolina might not think about a prenup, but the person could regret the decision if the marriage ends in divorce. Perhaps looking at the potential benefits of a prenuptial agreement appears advisable.

The value of a prenuptial agreement

A prenuptial agreement commonly focuses on financial matters if the marriage ends in divorce. Asset distribution might be the main component of a prenup as the contract could stipulate that the one spouse receives an agreed-upon amount and nothing more. For example, a spouse of lesser financial means may accept a prenup that caps marital asset distributions to 30%. The contract might also agree on alimony awards in advance as well.

Debt repayment decisions could factor into the prenuptial agreement as well. The prenuptial agreement might state that an ex-spouse agrees to pay all debt he or she accumulated.

Negotiating a prenuptial agreement

Often, someone with significant assets might want a prenuptial agreement when marrying some who has few assets. Of course, both parties may have substantial income and assets, and a prenuptial agreement might be important to both partners.

Regardless of each other’s financial situation, both may choose to negotiate the prenup to ensure that each person agrees with the terms. Negotiations for prenuptial agreements could take some time, but the effort might be more than necessary to protect retirement savings and other financial assets.

A prenuptial agreement must meet requirements to be valid under state law. Anyone intending to rely on these contracts might benefit from ensuring the document meets all legal requirements.