As summer approaches, many Arizona couples are preparing to take their vows. As they consider their seating charts and plan their ceremony, many will also begin to think about drafting a prenuptial agreement. These marital contracts provide a great deal of flexibility, and it can be difficult to know where to begin. A family law attorney can help guide the process, but some of the basics of many prenuptial agreements are outlined below.
One of the central aspects of most prenups is a structure by which assets would be divided in the event of a divorce. This includes a discussion of which assets are to be considered separate property, and which will fall under the category of marital property. In this part of the document, individuals can agree on assets that each would retain if the marriage were to end. Common inclusions are inheritance wealth, pre-existing retirement funds and business interests.
Another reason that many people create a prenuptial agreement is to dictate how alimony would be paid in the event of a divorce. This is especially important for spouses who enter into a marriage having already accumulated a significant degree of wealth. This section of a prenup can be as simple or as detailed as the parties desire. Some people even outline what conditions would affect spousal support, such as adultery on the part of the spouse who is asking for alimony.
Prenuptial agreements also commonly cover issues of inheritance. When the parties already have a child or children from previous relationships, it is important to ensure that those heirs are able to receive their intended inheritance. By including this information in a prenuptial agreement, as well as within the proper estate planning documents, both parties can enter into marriage with a clear understanding of how assets would be divided in the event of either death or divorce. Addressing these and other needs is important to many Arizona residents, which is why prenups are valuable family law and financial tools.
Source: businessinsider.com, "ASK A FINANCIAL PLANNER: 'What should I include in a prenup?'", Sophia Bera, April 17, 2016