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A prenuptial agreement is an agreement between a couple about to be married that is used to set out the rules that will govern their property, debts, income and expenses should the marriage eventually dissolve.

Prenuptial agreements allow both spouses to protect the separate property they bring into a marriage. Otherwise, if one of them owns an asset now and sells it after marriage, the cash may become joint marital property. In addition, a prenuptial agreement allows both spouses to protect themselves from the other's debts — those incurred before the marriage and those incurred during the marriage. And it may allow them to determine what level of support one of them will provide to the other if they divorce or if one of them dies.

You should consider a prenuptial agreement if any of the following applies:

• If you have children from a previous marriage;
• If you own your own business or are involved in a family business;
• If you have significant assets which you want to keep separate;
• If you are concerned about the amount of debt of the other party; and / or
• If you are giving up a successful career to get married.

The most important aspect of a prenuptial agreement is honesty. Both parties must fully disclose their assets. If it turns out either person has hidden something, a judge can consider the contract void.

There are certain essentials to creating a valid prenuptial agreement:

• The agreement must be in writing and executed before the marriage.
• The agreement must be fair and reasonable and based on full disclosure by both parties of all assets and liabilities.
• One lawyer cannot fairly represent both parties. Each party to the agreement should have their own attorney to prepare / review the document and answer all questions before signing.

Without a prenuptial agreement, assets could end up in the hands of your spouse's children from a previous marriage instead of your own children, or they could go to a mate achieved nothing financially while you became a success.

One option for softening the initial blow of a prenuptial agreement is to add a "sunset clause," which specifies a time, at which the contract would expire -- for example, after 10 years of marriage.

Only an experienced lawyer can assist you in creating a reasonable prenuptial agreement. Contact Charles R. Ullman & Associates today to discuss your needs. Please contact us online or call us at (919) 829-1006 if you would like to schedule a consultation.