When you’re planning a wedding, you have a lot of details to think about. A prenuptial agreement is most likely not something that is a top priority for you, but considering how many marriages end in divorce, it might be worth spending some time talking about it with your future spouse. This prenuptial agreement checklist will help get the conversation started.
Assets and Debts before Marriage
Most couples come together in marriage with a list of assets and debts in each of their names. You’ll each need to document each asset and debt that is in your name so that you can come up with a plan of action in the event of a divorce. Once you each make your list, you’ll need to consider how the assets and debts will be handled moving forward. Will they remain the property of each spouse, or will they be considered marital property?
Property Acquired during Marriage
The assets and debts you accumulate after marriage are considered marital property. That is, they belong to both spouses. The following are a few questions to think about when talking about marital property. How will you handle assets and debts that you accumulate after marriage? Will you split them in half? Will you come up with a different arrangement? What will that arrangement look like?
Credit and Debt
Premarital debt can affect many things in marriage, which is one important reason to follow this prenuptial agreement checklist when creating your agreement. For instance, if one spouse has a poor credit score, it could affect your ability to gain new lines of credit. Will one spouse help to pay off the other’s old debts using premarital assets? Will this be considered a gift, or will repayment be necessary in the event of divorce?
Nonmonetary Contributions and Career Obligations
Not everything that spouses bring to a marriage can be given a dollar value. For instance, both spouses could come to a marriage with careers, but after having children, one might decide to stay home with the kids. Raising children adds value to a marriage, but not everyone shares this view. It’s important to talk to your spouse about this issue to find out their attitude toward nonmonetary contributions to the marriage.
Another thing to consider in this prenuptial agreement checklist is how you will handle relocation in the event that one spouse is offered a new position in a new location. While good for one spouse and for the family in general, the other spouse might have to sacrifice their career to make it work. If divorce happens, how will you handle the loss of funds for the spouse who had to make the sacrifice?
Want to Complete Your Own Prenuptial Agreement Checklist with an Attorney?
The above list is by no means exhaustive. It merely serves as an example of the type of questions you’ll need to ask when creating a prenuptial agreement. Talking to a family law attorney will help you come up with a complete list of things to consider for your agreement. Don’t hesitate to contact AM Law today to talk about your situation.