If you`re planning to get married, it`s important to consider drafting a marital agreement with your partner. A marital agreement, also known as prenuptial agreement, is a legal contract that outlines how assets and debts will be divided in case of divorce or separation. Although it may not be the most romantic discussion to have, it`s a practical and wise choice for protecting you and your partner`s financial interests.
To help you get started, here are some examples of what a marital agreement can include:
1. Division of assets – This section outlines how assets such as property, investments, and retirement accounts will be split if the marriage ends in divorce or if one partner passes away.
Example: All assets acquired during the marriage and any increase in the value of separate property during the marriage will be considered marital property and divided equally between the parties if they separate or divorce.
2. Alimony/Spousal support – This section outlines whether one spouse will pay the other spousal support in the event of a divorce. This can include the amount and duration of payments.
Example: If the parties separate or divorce, one spouse may be entitled to receive support payments from the other spouse for a period of three years, or until they obtain suitable employment, whichever occurs first.
3. Debts – This section outlines how debts incurred during the marriage will be divided if the marriage ends in divorce.
Example: All debts incurred by either party during the marriage shall be considered marital debt and divided equally between the parties if they separate or divorce.
4. Business ownership – If one or both spouses own a business, this section can outline how the business will be divided in the event of a divorce.
Example: All shares and assets of the business owned by either party prior to the marriage shall be considered separate property. However, any increase in the value of the business during the marriage shall be considered marital property and divided equally between the parties if they separate or divorce.
5. Inheritance and gifts – This section outlines how inheritance and gifts received by either spouse will be treated in case of a divorce.
Example: Any inheritance or gifts received by either party before or during the marriage shall be considered separate property and will not be subject to division in the event of a divorce.
It`s important to note that marital agreements can vary widely depending on each couple`s specific situation. Consulting with a family law attorney is highly recommended to ensure the agreement is legally valid and enforceable.
In conclusion, a marital agreement may not be a romantic topic, but it`s essential for protecting your assets and financial interests in case of a separation or divorce. By considering the examples above, you can start drafting an agreement that works for you and your partner`s unique needs.