An agreement signed before marriage, covering what happens in the event of divorce, or death, or both. The agreement may be called:
Because working out the prenup requires open, honest discussion of money and financial issues before marriage. Differences about money are a major cause of marital problem. For many couples, the experience of talking about and resolving financial issues for the prenup acts as an inoculation against divorce. Additionally, it allows the couple to make a private agreement about their finances, rather than be subject to the divorce or probate law of the state.
The main topic is assets - those each has before the marriage and assets accumulated during the marriage. It can do any of the following:
A prenup with a built-in "sunset" provision might be the answer. That means that the prenup only is in effect for a certain number of years (for example 10 years). Another approach is for the prenup could provide for a gradual sharing of assets, such as no sharing of assets if there is a divorce in the first 4 years, but a 10% share after 4 years, increasing to 50% after 12 years.
There are 3 methods for negotiating the specific terms in a premarital agreement:
Both Mediation and Collaborative Law are decision-making techniques that are ideal for parties who are planning a marriage. The advantage of these techniques is that the engaged couple are actively involved in the negotiation. They speak directly to each other about needs and concerns.
Honey Hastings, Mediator
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