The unfortunate reality is that a significant number of marital relationships end in divorce. Taking rational steps to safeguard your future after your marriage is definitely the right thing to do.
A prenuptial agreement, also known as the “prenup” is becoming increasingly popular among engaged couples. This is a binding agreement that a soon-to-marry couple gets into with the goal of defining how personal and marital assets and debts are handled should the marriage end in a divorce. However, for the prenuptial agreement to hold, it must be devoid of the following:
A prenuptial agreement that contains unconscionable terms can be invalidated by the family court. Unconscionability refers to provisions that are outrightly unjust, unfair or is likely to expose one party to severe financial hardship after the divorce.
A prenup agreement can also be considered unconscionable if it contains provisions that require one party to do certain tasks during the marriage such as certain intimate acts to be eligible for a portion of the marital assets during the divorce. Similarly, any prenup that requires one party to do something that is illegal is considered unconscionable.
Incomplete financial disclosure
One of the biggest mistakes you can make during the prenuptial negotiation process is trying to hide your assets from your future spouse. By appending your signature on the final prenuptial document, you are asserting that you have made full disclosure of your financial information – and this refers to your assets and debts. The prenuptial agreement will be invalidated if the court establishes that either party was dishonest about their financial disclosures.
The divorce process comes with serious financial implications. Find out how a properly written prenuptial agreement can help you secure your financial future after the divorce.