Prenuptial Agreement Defined
Prenuptial agreement is defined as an agreement between two parties who intend to marry, and basically outlines how the couple will manage assets, debts and other financial aspects during the marriage and in the event the couple splits. The agreement goes into effect the day the couple is married.
Reasons for a Prenuptial Agreement
Prenuptial agreements can actually assist a couple to avoid disputes over property and can potentially remove some financial stress by protecting individual retirement accounts and/or business or property owned by each individual. If a divorce occurs, a prenuptial agreement can protect those assets from potential division as well as protect inheritances of children from a previous marriage.
Now that we know what a prenuptial is and how it can benefit those who engage it, let’s review some myths that evolve around this growing popular decision.
Myth No.1: Prenuptial agreements are expensive and are only for people with a lot of money. Considering the stress of divorce, and how often relationships end in divorce, as well as increasing financial sophistication and independence of many people, a prenuptial agreement can benefit anyone who plans to marry.
Myth No. 2: Prenuptial agreements are only useful if there is a divorce. Prenuptial agreements are useful estate planning tools as well. A prenuptial agreement can be especially helpful if you have children from a previous marriage or have family heirlooms that you want to keep in the family.
Myth No. 3: Prenuptial agreements are not romantic. The ability to discuss with your partner your future financial plans and expectations for each individual, along with relationship goals, generally leads to a more stable relationship than if one spouse expects the other to solely take care of the finances and planning.
Myth No. 4: The courts do not uphold prenuptial agreements. At times, courts do invalidate these agreements, and in most cases these agreements are those prepared without an attorney, or those that were manipulated by one partner over another. By creating a legitimate prenuptial agreement drafted by an attorney, you can be confident that the prenuptial agreement will be acknowledged by the Court.
Myth No. 5: Only the financially successful partner wants a prenuptial agreement. Prenuptial agreements are used to set expectations for the relationship. A prenuptial agreement, for example, can include a provision to compensate a partner for an interruption in a career through spousal support, so that one parent can care for the children during maternity leave.
A Guide to Prenuptial Agreements in Illinois
Prenuptial agreements in Illinois can include the following options:
- Alimony, with an outline of amount and duration of payment
- Dispersal of property at the time of divorce
- Plan of dispersal of property
- Create a will that will be carried out upon divorce
- Death benefits from each spouse’s life insurance policy
- Which state law that will apply to the agreement in case of a dispute
- Any other matter that is chosen to be contracted
Either spouse can amend or revoke a prenuptial agreement at any time after marriage. The amendment or revocation must be a written document and signed by both partners.
Many times when deciding what is accurate and lawful about issues such as a prenuptial agreement can be difficult and something that you may not wish to do prior to one of the happiest days of your life. However, if you want assistance with understanding the laws about Prenuptial Agreements in Illinois and find out if this financially sound decision is right for you and your soon-to-be spouse, please contact our attorneys at Sherer Law Offices. We provide you with the most recent information and guidance throughout any Prenuptial Agreement procedure and will address legal concerns you may have as you make your marriage plans.