Many people are familiar with prenuptial agreements,or “prenups," and some of their pros and cons. However, what most do not know is that they can actually be quite complex and may include much more than standard asset division terms. They are also not as ironclad as popular culture paints them to be. It is imperative that before you enter into a prenuptial agreement, you should have a good understanding of exactly how they work.
What to Include and Leave Out
The are two common reasons why a couple may choose to into a prenup: to protect one spouse from the consequences of the other’s debt or to ensure that provisions are made for the children of a previous marriage. Inheritance laws in most states immediately default to a person’s children from their current marriage, so if there was a promise, for example, to save a personal item for a child of one’s first marriage, it can be advantageous to note that in a prenup. Prenuptial agreements are legally binding unless it can be proven that the agreement is unenforceable.