Financial Agreements: Choosing between Pre-Nup & Post-Nup
When being or planning to get married, it is easy to get excited with all the romance. For the practical mind, however, the possibility of a marriage ending a divorce is always there—and so the issue of wealth protection never dies.
To avoid issues with property division and debt responsibility allocation, the two of you instead can enter in a pre-nuptial and a post-nuptial agreement. Both binding financial agreements are meant to regulate your affairs should the marriage breaks down in the end. The only difference between the two is that the former is done before the wedding, while the latter is created during the marriage.
According to Rapid Legal Solutions, “During a separation there are usually a number of difficult decisions which need to be made involving children and property.” As the valid option solely depends on the stage of your relationship, here are the key practices when entering into a legally enforceable financial contract:
Sound Legal Advice
Before your agreement will have legal force, it requires you to state that you have received independent legal advice. The state wants to make sure you’re fully aware on how the contract will affect your rights and whether or not it’s to your advantage prior to your signing on the dotted line.
Constant Review
Revisiting your agreement every couple of years ensures its terms are always in line with you and your partner’s current situation. Changes in circumstances are almost inevitable over time, which is why it’s in both parties’ best interests to review the contract regularly. As binding agreements can be difficult to change once signed, putting a clause in the contract covering this may help smoothen the process.
Immediate Action When It Comes to Changes or Cancellation
If you have a valid reason to change or cancel the agreement, it is sensible to act the soonest possible time. You might sense dishonesty on your partner’s part, feel the other party acted in an unfair way or decide that the contract inconvenient to carry out, it’s best to consult your attorney immediately.
A financial agreement is never designed to undermine a romantic relationship. It’s a contingency plan to protect both parties from the sometimes acrimonious nature of divorce.
