A Prenuptial agreement is a type of marital contract signed before marriage. This contract specifies each spouse’s property and showcases all the property obtained before marriage. It further establishes the rights and obligations of each individual during the marriage. One of the most significant aspects is that it provides instructions on how the property will be divided between the event of divorce or the death of either spouse.
All states have a structure on how marital property will be distributed in case of death or divorce. However, courts will uphold a valid prenuptial agreement that differs from the local state law as needed. A prenuptial agreement is important because it takes control of your property and assets away from the state and places it between you and your spouse.
The judge will enforce the prenup so long as it meets the requirements of a valid contract. It must be entered into with full and fair disclosure of all the properties among you both. Furthermore, the agreement must be executed and acknowledged with the full formality mandated for a property deed to be recorded.
A prenuptial agreement can contain several issues regarding property distribution. There is a distinction between separate property and marital property. It is critical to discuss who will obtain the assets in the event of a divorce. Keep in mind that if you fail to distinguish between your individual property in the prenup, then later, it may be considered marital property and will be divided equally between you.
What are the Benefits of Having a Prenuptial?
The American Bar Association states that anyone planning to get married should consider a prenuptial agreement. Some believe that the agreement only benefits the individual who brings more money to the marriage and is not as beneficial for the one with fewer assets. This is not true because, over time, many things can change.
For instance, the spouse that brought in money or had more assets can lose them. Furthermore, individuals with fewer assets can grow them and have more money. Prenuptial agreements’ main purpose is to protect against the unknowns of the future.
Another common misconception about prenuptial agreements is that they indicate that the other spouse does not trust them. This needs to change because although having difficult conversations about finances is not romantic, it is certainly practical and will guide you both in the future. Many couples end their relationships because they cannot properly communicate with each regarding their financial situations.
It is important to be transparent about financial responsibilities and obligations. Discussing how property from each individual will be managed can prevent more problems in the future. A healthy financial beginning is useful in any marriage and can help you start your family in the right direction.
What Happens if You Die Without A Will?
All states have regulations regarding wills and what occurs if someone dies without a will. The state will have the authority to decide on the deceased’s property. It will adhere to the local state’s laws and distribute the property accordingly. Usually, the property would be granted to your spouse, children, and other family members.
Remember that a state does not consider your wishes regarding how you want to divide your estate. It will simply look upon the estate planning laws and proceed that way. A will allows you to modify the state’s default plan to suit your preferences. It also lets you exercise control over your personal decisions that broad and general state default terms cannot address.
Thus, it’s important to consider having a valid will in place early on in life, so that your legal rights and interests are covered. It’s also important to keep your will updated in case there are any major life changes or if you’ve changed your mind about a certain aspect of your will.
What Does a Will Do?
A will is a legal document that grants you the authority to distribute your property to whomever you choose. However, some laws restrict certain provisions of disinheriting your spouse or children. Be sure to consult with an expert in the field to understand how drafting operates in your state.
Furthermore, several functions of wills are used. Wills can be utilized to achieve a wide range of family and tax objectives, with many variations. For instance, if a will provides for the outright distribution of assets, it is often considered a simple will. Moreover, if the will creates one or more trusts upon your death, the will is referred to as a testamentary trust will.
Additionally, you can assign a guardian for your minor children. This will allow for more protection for the child and grant you the authority as a parent to guard their interests. Moreover, you can designate an executor (personal representative) of your estate in your will and eliminate their need for a bond. To understand this more, you can consult a lawyer for further details.
You can award your estate to anyone you like, and these may include stepchildren, friends, or charities. You may assign a successor custodian and avoid court appointments as needed if you were designated as the custodian for a child or grandchild. State laws specify how this must be carried out, and you can refer to the Uniform Gift (or Transfers) to Minors Act.
How Do I Execute a Will?
According to the American Bar Association, the wills must be signed in the presence of witnesses, and certain formalities must be followed, or the will may not be enforceable. For instance, “a will that is formally executed in front of witnesses with all signatures notarized is deemed to be ‘self-proving’ and may be admitted to probate without the testimony of witnesses or other additional proof,” as the association states.
Proving that a will is valid is time-consuming and costly. Therefore, creating a will that has all the right components to make it valid is a crucial step. This will prevent further issues in the future. Careful and precise will drafting can help prevent will disputes and other legal conflicts which may lead to costly litigation and time-consuming processes.
Adding something later on to the will is a bit complicated. It is referred to as a codicil, and it must be signed with the same requirements. However, such changes can create confusion and inconsistency for the will. Therefore, be alert when including any changes to the original text. Some states can be lenient in the changes and not require certain formalities. Pay attention to the local regulations on wills and what they allow in terms of modifications to ensure your rights are protected.
When Do I Need to Contact a Lawyer?
Prenuptial agreements and wills are two complicated legal documents that can heavily impact your life in the future. Therefore, consulting a local prenup lawyer in your area regarding these matters will help you in the process of creating them. Making mistakes on any of the content can cause them to be invalid and unenforceable.
Having a path to success on these issues means researching and seeking professional advice to guide you in the right direction. These contracts are crucial documents that must be written according to state laws.
