More and more couples getting married have chosen to get prenuptial agreements. However, not every couple needs a prenup. Understanding what exactly a prenuptial agreement is and what they cover, can help you determine whether or not you need one.
What’s a Prenup?
A prenuptial agreement, or “prenup,” is a contract between two individuals who are engaged to be married. The prenup will define the marital rights and responsibilities of each party, as well as how property will be divided in the case that death or divorce occurs. It will take effect when the couple officially gets married.
North Carolina laws state that in order to be valid and enforceable, the agreement will need to be recognized by each party as well as drafted and finalized.
If the couple does not get a prenup before marriage, they can sign a postnuptial agreement. A postnuptial agreement will cover the same rights and obligations as a prenup. The main difference is that a postnuptial agreement is created after the couple is already married.
What Does a Prenup Do?
Prenuptial agreements are made to define the rights and obligations of each party in the event of a divorce. Marital rights can include spousal support, property ownership, and debt repayment. Typically a prenuptial agreement can cover the following:
Each spouse’s right to separate and marital property
Each spouse’s right to buy, sell, transfer, spend, or manage property and assets during the marriage
Each spouse’s entitlement to spousal support
Each spouse’s right to death benefits from the other party’s life insurance policy
Protect one spouse from the debts of the other
The making of a will in support of the agreement
The state law governing the agreement
Property division upon separation, death, or divorce
Any other issue the couple agrees on
What Prenups Don’t Cover
If you are contemplating getting a prenup, you should note that there are limitations to what can be included in the agreement. Prenups do not cover:
Either spouse’s premarital debts
Child custody or visitation matters
Alimony in the event of a divorce
Day-to-day household matters
Anything prohibited by the law
Whether or not your assets are sizable or negligible, a prenuptial agreement may be beneficial in protecting your assets. The future is uncertain and ensuring your finances are secure can help aid in your financial freedom in the event of a divorce.
A family law attorney can help you determine whether or not you would benefit from getting a prenuptial agreement. If you are already married but would like the security a prenup offers, you may want to think about getting a postnuptial agreement.
At Rech Law, P.C., we offer our services for both prenuptial and postnuptial agreements. When it comes time to draft your agreement, you want to make sure that it will hold up in court if it is ever needed. Our Charlotte prenuptial agreement attorneys can ensure you are secured in all aspects of your prenup.
Contact Rech Law today at (704) 659-0007 to draft your prenuptial agreement.