The notion of creating a prenuptial agreement can be a difficult one for many couples. We’re bombarded with stereotypes, such as prenups only being something the wealthy consider. Others buy into the myth that they are a precursor to a doomed marriage.
Even the state of Kentucky struggled with the issue for decades. Before 1990, the state banned prenups under the belief that they promoted divorce. The truth is that many couples from all backgrounds and income levels choose to sign these agreements for peace of mind.
Issues that prenups cover
Prenuptial agreements are contracts between spouses addressing how debts and assets will be divided in the event of divorce or a spouse’s death. They are only valid after the nuptials take place. In Kentucky, they can involve several issues, such as what happens to marital property, retirement benefits and other assets after divorce or death.
Prenups can also dictate whether each spouse can transfer, buy, sell or use property they own together and can include property owned by the other spouse. They can also set alimony terms in case of a divorce, including the amount and how long payments will last. Prenups cannot determine child custody or child support in Kentucky.
How do you know if you need one?
While prenups may be less critical for some couples, many benefits exist. Serious consideration should be given if you or your future spouse have significant debts going into the marriage or if either party expects to receive a significant inheritance.
A prenup can also protect children from a prior relationship. A primary reason is it allows you and your spouse to control the process and avoid court costs if the marriage ends. One of the lesser-known benefits is that it gets couples talking about finances before the wedding.
Spouses are protected from unfair agreements
Prenups can’t be made under duress, and each party must fully disclose all assets and debts when creating them. Kentucky courts typically throw them out if the agreement unfairly takes advantage of one partner or if fraud is involved. A prenup may also be declared invalid if either spouse suffered from a mental illness or addiction when drafted.
Getting experienced legal advice can help ensure that your prenup is valid and enforceable. If circumstances change, you’re not locked into the terms of a prenup. You and your spouse can revise the arrangement through a postnuptial agreement. Drafting a prenup is one of many decisions that couples consider and one that many are glad they made together.