What Should Go Into a Prenuptial Agreement?
There are many details to consider when drafting a prenuptial or postnuptial agreement. Before such agreements are prepared by a lawyer, each party much provide a list of current assets, debts, and incomes. Any known health issues must also be disclosed. Thereafter lawyers can draft and customize prenuptial and postnuptial agreements to address and protect a client’s preferences and concerns. Such agreements may include the following assets and debts:
- Marital Property
- Credit Cards and Debt
- Nonmonetary Contributions
- Spousal Support and Alimony
- Gifts from Families
- Higher Education
- Business Ownership
In addition to these assets and debts, prenuptial and postnuptial agreements may also include clauses about:
- Management of Assets and Income
- Duration of Premarital Agreement
- Death or Disability Estate Plan
- Fault Considerations
How Common Are Prenups?
Prenuptial agreements are growing in popularity. According to a 2013 survey, 63% of the 1,600 members of the American Academy of Matrimonial Lawyers reported an increase in prenuptial agreements over a three-year span.
The same survey attributes the rise in popularity to the millennial generation that settles down later in life and enters into marriage contracts while already possessing assets and financial worth.
The most commonly covered details in prenuptial agreements include protection of separate property, alimony, spousal maintenance, and division of property, while the least commonly covered details include health insurance and occupancy of second homes.