Premarital agreements are mutual agreements between couples on certain issues just in case they divorce or separate in future.
This agreement is made before they make their vows or sign any legal papers.
It sounds like a more pessimistic approach to the marriage but it does come in handy if you eventually separate because of one reason or the other, especially on bad ground.
Divorce is sadly on the rise across many countries. People are moving in and out of marriage like it is not a life long commitment anymore. The chances of divorce for couples that re-marry after the first divorce are even higher.
Divorce can have a very bad impact on children. The agreement also enlists the asset allocation between both parties in the event of a divorce.
A premarital agreement protects your property for your children. It will also avoid the common legal battles that are often as a result of divorce. You wouldn’t want your children to see the ugly face of divorcing parents.
It is quite costly to have your lawyers help you sign this agreement legally but it’s much cheaper than the legal fees, emotional stress and so on that you are going to experience during the divorce without the premarital agreement.
Generally a premarital entails some of the following issues
The disposition of property and assets upon divorce, death or separation, the list of rights and obligations of the couple in any of the assets they acquired before the marriage, the rights of each of the two in property that either one of them acquired after the marriage. These are just a few of the issues that a premarital agreement will highlight.
Premarital agreements are also drafted for those that want to remarry and they have children from their previous marriages. They need to make sure that their children are financially secure after they are gone.
This will avoid disputes and unnecessary squabbles between your spouse and your children when you are gone.
When trying to understand this type of agreement, you must look at it this way: You are writing down a mutual agreement on who takes who in the event that you separate and you are doing this when you are still in love.
One of the requirements for this agreement is that it should be fair and both parties should be willing to sign to the agreement. Anything that one sides and signed by one partner that is under duress will not be enforced in court.
So a premarital agreement is essential, although you really do not see the need when everything looks so perfect and rosy as you enter on this journey together.