We help clients to draft and execute comprehensive and legally valid prenuptial agreements in Cambridge.

What is Prenup Agreement?

A prenuptial agreement, commonly known as a prenup, is a written agreement that a couple signs before getting married. The contract sets forth the couple’s financial plan for their marriage in the unfortunate event that the marriage breaks down or one person dies. Prenuptial agreements might seem unromantic. However, they are arguably the best way of ensuring that should the marriage end, there will be little or no conflict over money and property.A common misconception is that prenups are simply a strategy for rich people to safeguard their assets, especially when they marry someone less wealthy. However, this is not the sole purpose of a prenuptial agreement. Actually, a prenuptial agreement is a good way to start your marriage in the spirit of honesty and openness. A prenup agreement is particularly beneficial if it is drawn in such a manner that both spouses would be able to move on with their lives with ample financial security even after divorce.

It is certainly true that in the past, wealthy people were more likely to seek prenuptial agreements than people who don’t have significant assets. However, this isn’t the case any longer. A prenup would also be necessary for people in many other circumstances. For example, you could seek a prenup if you run a business and you would like to ensure that its future is protected. Perhaps you have children from another relationship and would like to safeguard some assets for them. If you own a house and you are getting married, a prenuptial agreement is a must-have.There are many reasons why you and your spouse would want to have a prenuptial agreement. If you are unsure whether this is the best approach for you, feel free to talk to a prenuptial agreement lawyer. A lawyer will help you to understand the pros and cons of a prenup.

What Should Be Included in a Prenup?

Disputes and misunderstandings over finances are one of the leading causes of failed relationships. A prenup is a practical and respectful way of addressing your new family’s financial future. The agreement ensures that you and your spouse are on the same page and you both will be protected in the unlikely event of divorce. Below are some of the important things that you should include in a prenuptial agreement:

• Premarital Assets and Debts — a prenup must outline the property and debts that each spouse had before marriage and how they will be treated when the couple gets married. For example, if one party owned a home before marriage, would this home be jointly owned by both spouses after marriage or will one spouse exclude it from being shared at separation? If one spouse had debt before marriage, will he/she be solely responsible for the debt, or will both spouses have to repay the debt? A prenup should answer these important questions.
• Children from Previous Relationships — a prenup agreement should also address children from previous relationships. The agreement may outline how these children will be financially cared for and the inheritance arrangements. In normal circumstances, the remaining spouse usually has the first claim on inheritance when one spouse dies. However, if you have children from another relationship, you will want to make certain specifications in the prenup to guarantee their inheritance.
• Marital Assets and Debts — normally, the law treats any marital properties and debts accumulated during marriage as jointly-owned by both spouses. If you want to separate certain assets and debts from the joint ownership, you have to specify this is the prenuptial agreement.
• Family Property — one spouse could have some family property like an inheritance that they would like to retain even after divorce. The spouse can outline this in the prenup to ensure that in case of divorce, they end up with the property, and in case of death, the property is passed down to their children.
• Division of Property in Divorce — a prenup should outline how your property and debts will be divided in case of divorce. This is particularly crucial if a spouse owns a business and they want to ensure that they retain control over the business after a divorce.
• Spousal Support — a prenup could also address the issue of spousal support. If spousal support is to be paid, how much should be paid and for how long? Spousal support releases are more difficult to include in prenup agreements as they will be closely scrutinized by the Court if ever challenged.

What Should Not be Included in a Prenup?

• There are many misconceptions regarding what can and cannot be legally included in a prenuptial agreement. Below are five elements that you cannot include in a prenuptial agreement in Cambridge:
  • Non-financial Rules — the role of a prenuptial agreement is to outline rules and instructions regarding certain financial-related issues. You cannot use a prenup agreement to establish ground rules in your marriage on things like how to raise children, how you will approach religion, and who will perform certain tasks.
  • Issues Involving Child Support and Custody — you cannot include issues involving child support and child custody in your prenuptial agreement. For example, you cannot state that one spouse will not be obligated to pay child support or that a spouse will be granted sole custody of the children after divorce.
  • Anything Illegal — you should not include anything illegal in the prenuptial agreement. The agreement should not invalidate or override statutes.
  • An Incentive for Divorce — you should not include any provision or terms that are deemed to be an incentive for divorce.
  • Unreasonable or Unfair Terms — if the judge establishes that the terms of the prenup are inherently unreasonable or unfair towards one spouse, he or she may invalidate the agreement.
  • Cheating Clauses – Clauses that punish one spouse or the other spouse if they are caught cheating will not be enforced by a judge.

Do I Need a Lawyer for a Prenup?

The law doesn’t require you to have a lawyer to write a prenup. However, when you draft a prenup on your own, the chances that the judge will approve the prenup are low. Hiring a lawyer increases the likelihood of having the prenup approved by the judge if it is later challenged.

The judge will only approve the prenup if it complies with the law. A lawyer understands all aspects of drafting a prenup, including what should be included and what should not.

Investing in a lawyer will cost you money. However, the cost is worth it because you will have the assurance that your assets will be well protected should your marriage end in divorce.It really is a good return on your investment.If the cost of the prenup is $4500 and you are able to protect over $200,000 in assets, it just makes good financial sense.