A spousal agreement, often called a marital or prenuptial/postnuptial agreement, is a written contract between two individuals before or during marriage. This agreement can cover various aspects, including the following.
Marriage
A spousal agreement can detail the roles and responsibilities of each partner within the marriage, encompassing financial obligations, household responsibilities, career aspirations, and other expectations. For instance, one partner may agree to be the primary breadwinner while the other pursues higher education. Such clarity can help prevent disputes later on.
Example: Jamie and Alex agree that Jamie will support Alex while he attends medical school. In return, once Alex starts practicing, he will support Jamie as she pursues her dream of opening an art studio.
Property Ownership
Couples can predetermine the division of both individual and joint properties. This property ownership can include real estate, bank accounts, investments, and personal possessions.
For example, Taylor and Jordan bought a house together after getting married. Their spousal agreement states that in the event of a divorce, the equity in the house will be divided 60% to Taylor and 40% to Jordan, reflecting their initial contributions.
Alimony
Alimony, or spousal support, can be determined based on several factors, including the length of the marriage, each party’s financial status, and the receiving spouse’s needs.
Example: If Sam gave up a lucrative career to support Casey’s business endeavors, a spousal agreement might state that Casey will pay alimony to Sam for a set period post-divorce, recognizing Sam’s sacrifice.
Debt of Marriage
This is vital as debts, like assets, can be a source of contention in a marriage. Debts of marriage might include mortgages, credit card balances, loans, etc.
Example: Morgan enters the marriage with substantial student loans. The spousal agreement might stipulate that this remains Morgan’s sole responsibility, even post-separation.
Child Custody and Visitation Rights
The child visitation rights agreement can outline which parent will have primary custody, the schedule for visitation, holiday arrangements, and more. Ensuring that any terms prioritize the child’s best interests is vital.
Example: Riley and Jordan agree that in the event of a separation, Riley will have primary custody of their son, but Jordan will have him every weekend.
Tax
Couples can agree on how they’ll file their taxes (jointly or separately) and how any refunds or liabilities will be divided.
Example: Chris and Alex decide that any tax refunds received from their joint filing will be split equally, even though Chris earns significantly more.
Insurance
This can specify who will carry the insurance, who pays for it, who are the beneficiaries of life insurance, and how medical decisions might be made if one party becomes incapacitated.
Example: Casey and Jamie stipulate that Casey will remain on Jamie’s health insurance plan but will contribute 50% to the monthly premiums. They also decide the daughter will be the sole beneficiary of both life insurance policies.
Is Spousal Agreement Legally Binding?
A spousal agreement is legally binding, provided it meets specific criteria. If a party claims the agreement was made under duress or is found to be unconscionably one-sided, a court might decide not to uphold it. For an agreement to be legally binding, it should be made voluntarily, with both parties having disclosed the other’s financial situation, and both should have had an opportunity to consult with independent legal counsel.
When Should a Spousal Agreement Be Used?
A spousal agreement should be considered in each of these situations.
Before Entering a Marriage to Protect Individual Assets and Set Clear Expectations
Before a union, many individuals wish to safeguard their personal assets, especially if they have accumulated significant property, investments, or inheritances before the relationship. By setting clear expectations, couples can diminish the potential for future disputes over assets and responsibilities.
For instance, Anna, who inherited a family estate, might want a prenuptial agreement with Tom to guarantee that the estate remains solely in her family’s lineage, irrespective of potential marital conflicts.
When There are Significant Financial Disparities Between the Partners
When one partner has amassed considerably more wealth or debt than the other, a spousal agreement offer protects individuals. It can preserve the financial integrity of the wealthier partner while ensuring the other isn’t unfairly burdened with debts they didn’t acquire.
Consider a scenario where Leo, an established entrepreneur, marries Mia, a graduate student. An agreement might stipulate that Leo’s pre-existing assets remain his, but mutual earnings post-marriage will be equitably divided.
If One or Both Partners Have Children from a Previous Relationship and Want to Secure Their Inheritance Rights
Ensuring that ren from prior relationships are not inadvertently disinherited due to a new marital union is crucial. A spousal agreement can safeguard their inheritance rights.
Take, for example, Rachel and Eric. Both have kids from previous marriages. Their spousal agreement can designate that their assets will primarily benefit their biological children, protecting the youngsters’ inheritance.
When Partners Want Clarity on the Division of Responsibilities and Expectations During the Marriage, Such as Debt Handling
Couples might wish to outline specifics like which bills each will pay, how they’ll manage savings, or the approach to handling existing debts to avoid future misunderstandings or disagreements.
Alex and Jamie, while choosing to pool resources for joint expenditures, might agree that the student loan Jamie took out before the relationship remains solely Jamie’s responsibility.
If Partners Are Considering Becoming Legally Separate and Need to Define the Terms of Their Separation
Some couples might gravitate towards legal separation instead of divorce for a variety of reasons – be it personal, religious, or financial. In such cases, a clear agreement becomes pivotal in detailing terms that protect the interests of both parties during the separation.
Consider Monica and Chandler, who, after two decades together, opt for legal separation owing to personal differences. Their spousal agreement can encompass asset distribution, alimony, and child custody, providing clarity and protection during their separation.
What Are the Requirements of a Spousal Agreement?
For a spousal agreement to be valid:
- It must be in writing.
- Both parties must agree voluntarily, without duress or undue influence.
- There should be full and fair disclosure of all assets and liabilities by both parties.
- The terms must not promote divorce or violate public policy.
- It’s recommended, though not always required, that both parties have independent legal representation to protect their rights and interests.
- The agreement must be executed properly, often with witnesses and notarization.
Do I Need an Attorney?
Yes, while it’s possible to draft a spousal agreement without an attorney, having one ensures that the document is legally sound, fair, and meets all the legal requirements. An attorney can clarify complex issues like child custody, alimony, and property division.
Considering the intricate nature of spousal agreements, it would be wise of you to start thinking about hiring a professional. If you’re looking for a family law lawyer to guide you through the process, visit LegalMatch to find the right attorney for your case.
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