What Things Can And Cannot Be Addressed In A Premarital Agreement?
A prenup is usually a function. In one case, for instance, a client was ready to inherit, her mother had terminal cancer, and she was getting married. The client had inherited six brownstones in Brooklyn worth a lot of money. The brownstones were rental units that her mother had inherited from her father 10 or 15 years before. The client did not want her husband to think that if the marriage failed, that there would be any chance that he was going to get any part of the Brooklyn real estate. The agreement was set up so that all the rental money would never co-mingle. They set up a separate account for the rental money, and anything that the client bought with that money for the marriage would be shared. For example, if she used $100,000 for a house, it would be their house, and they would share it 50/50 at the end.
The couple laid out a plan on how to deal with the money. I had another client on a second marriage that had a sizable stock portfolio that she wanted isolated from the husband. They laid out a plan to indicate that the money would not co-mingle. People who want prenups never co-mingle, so that is not a problem.
When Does A Premarital Agreement Become Legally Enforceable?
The minute that a premarital agreement is signed, it becomes legally enforceable. A premarital agreement is a contract. If you back off, you are on the hook for the car payment the minute you sign. However, it doesn’t matter if the parties never get married, but if they get married, then it’s enforced before the marriage.
Are There Any Other Reasons That A Premarital Agreement Would Become Invalid?
All contract principles apply. That’s one of the reasons why the other person needs to have a lawyer. The contract requires a meeting of the minds. For instance, an individual could be discussing one of their pensions while the other person’s talking about the pension, 401k, and IRAs. In other words, the one individual was talking about a pension while the other one was thinking about all of the assets. That’s why it’s essential to have two lawyers involved so that all the terms can be explained, and all the questions asked. Sometimes, people don’t ask questions because they didn’t know there was a question to be asked.
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