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The Basics of Prenuptial Agreements
MOUNTAIN VIEW, Calif., May 8, 2003 - June is the most popular month for weddings, according to the National Center for Health Statistics. But should a prenuptial agreement be part of the wedding planning? The legal Web site FindLaw offers some helpful information and dispels a few common myths about prenuptial agreements.
Prenuptial Agreements Aren't Just for the Wealthy
People often associate prenuptial agreements with couples who have substantial assets. However, people of more modest means may also find a prenuptial agreement helpful in certain situations. "The quintessential use of a prenuptial agreements is a second marriage involving children from a previous marriage," says Ed Winer, a nationally recognized family law attorney with Moss & Barnett in Minneapolis. "For example, a person with children from a previous marriage may want to make sure that certain assets go to his or her children. In most states, assets automatically go to the surviving spouse when a spouse dies, unless there is a prior agreement."
In addition, prenuptial agreements can protect a family business, professional association or family farm from becoming entangled in divorce or probate proceedings.
Prenuptial Agreements Protect Against More Than Divorce
A prenuptial agreement often makes estate planning easier. Surviving spouses have automatic rights in the event of death of a spouse. However, in many states, spouses can be disinherited. In addition, wills and trusts can be modified at will. Prenuptial agreements, however, form binding agreements that can be modified only with the agreement of both parties.
Prenups Can Protect Both Parties, Not Just the One Who Has the Most
"Under the laws of most states, these agreements have to be fair," says Winer. "They can't be for the benefit of only one party, or only protect the person who has the most assets going into the marriage. For example, if one spouse agrees to give up his or her career after the marriage, or agrees to help support his or her spouse through graduate school, a prenuptial agreement can provide protection in the event the marriage doesn't work out or the spouse dies."
Prenuptial Agreements Aren't Always Iron-Clad
Having a prenuptial agreement is not necessarily a guarantee that a divorce won't be contentious. Prenuptial agreements are designed to provide a measure of legal protection in the event of a divorce; however, like any legal document, its validity can be contested in court.
"Prenuptial agreements allow individuals to create their own private body of law that covers their unique circumstances," says Winer. "Each prenuptial agreement is designed to accommodate the particular needs of the people involved. It gives people a way to protect what's important to them in the event of a change in life circumstances, such as a divorce or death."
Laws covering prenuptial agreements vary significantly from state to state, and each party should have its own attorney review the agreement prior to signing it. Legal information Web sites such as FindLaw.com (www.findlaw.com) can provide additional information on prenuptial agreements, as well as directories for finding local family law attorneys.