Prenuptial Agreements
For most engaged couples, the break-up of a marriage is farthest
thing from their minds during the months prior to the wedding.
However, those who have experienced divorce or death of a spouse,
either directly or through a family member or close friend, know how
difficult and complicated it can be to sort out details such as
property division and spousal support. As a result, many couples
today chose to create written contracts, called premarital or
prenuptial agreements, prior to marriage. Prenuptial agreements
are designed to control most financial matters between spouses. Such
agreements allow couples to determine, before marriage, ownership
rights to their property in the case of divorce or death. While it
was once believed that such agreements induced divorce, today
premarital agreements are seen to do just the opposite, by ensuring
couples’ expectations are clearly defined prior to marriage. In North Carolina prenuptial agreements are generally enforceable as
long as they do not violate public policy. The agreements can
contain provisions regarding future disposition of property owned
separately prior to marriage, division of property obtained during
marriage, amounts of alimony or post-separation support, or waiver
of such support. However, a court may not enforce alimony provisions
in an agreement if, for example, a spouse would be insolvent without
being awarded alimony at divorce. Similarly, a court would not
enforce an agreement that adversely affected a child. Even if a
premarital agreement addresses child support or custody, courts will
override the agreement if a child’s best interests would not be met
by the predetermined provisions. Although any couple could benefit from a premarital agreement,
couples entering into second marriages may have unique concerns
which such an agreement can meet. Couples may include provisions for
estate planning, such that their assets go directly to children of
their first marriages, at their deaths. The agreements can also
ensure financial steps taken prior to the second marriage, such as
college savings planning, continue after the marriage. In order to create a valid and enforceable prenuptial agreement,
certain criteria must be met. The agreement must be signed and in
writing. It is imperative that both parties fully disclose all of
their financial information, including assets and debts. Since
prenuptial agreements must be voluntarily made, it is best to sign
the agreement several weeks before the wedding so that one spouse
cannot later argue that he or she was coerced. If you are already
married and interested in creating a similar arrangement, North
Carolina courts have recognized the validity of postnuptial
agreements. Agreements made after marriage can help a couple resolve
property issues that arise in the future. In addition to prenuptial and postnuptial agreements, we can assist
unmarried owners of joint property with agreements designed to
protect them in the event the relationship ends for any reason. Please contact us today or call us at
800-201-0413
Email:
info@trustcounselpa.com |
