What to Consider for your Prenuptial Agreement – Part 2

Hopefully you have read our prior blog discussing the first few factors you should consider when negotiating your prenuptial agreement. Below are a few more:

Spousal Maintenance

Depending on the applicable state law, you may want to create your own terms regarding the payment of alimony. This may be particularly important if one spouse intends to work and the other does not.

Gifts

How will gifts received from family members be treated? This includes an inheritance, but also valuable gifts or loans made by family members. Should it be treated as a marital asset or kept separate?

Taxes

How you treat your finances may impact how you file your taxes. You may decide to file individually rather than jointly. This is especially crucial if one spouse is expecting a refund that could be put into jeopardy if the other spouse has an old tax debt. It is wise to confer with a tax professional regarding this matter.

Ownership in a Business

If you or your spouse is a business owner, consider working out a plan for how to value the business if you should divorce. For example, if you agree to use a forensic accountant to audit the business and determine its value, it can prevent fighting over the method of valuation.

Estate Plan

A married couple should create an estate plan as quickly after their wedding as possible, especially if you have children together or from prior relationships. While a prenuptial agreement can assist you in making numerous financial decisions between the two of you, an estate plan can set forth the distribution of assets to other family members if you should die.

Term of Agreement

If you anticipate your financial situation changing dramatically as time passes, you may want to include a clause that the premarital agreement must be renegotiated after a certain amount of time has passed.

Dispute Resolution

If a dispute arises regarding the interpretation of the prenuptial agreement, you can set forth how it will be handled. In other words, do you want to include a provision requiring mediation, arbitration or some other alternative dispute resolution method to avoid litigation?

Contact the Men’s Divorce Law Firm to schedule a consultation with a caring professional, and aggressive advocate for men’s rights in prenuptial agreements, divorce, child timesharing (custody), and paternity matters.