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Things to Consider Before Entering a Prenuptial Agreement

A pre-nuptial agreement, or prenup, is an agreement entered into by a couple which states how assets will be divided if they divorce or the marriage is dissolved. While a divorce is the last thing that is on a person’s mind when they enter a marriage, it is still a beneficial agreement to enter into since it helps you to settle your financial responsibilities and rights. However, before entering into this agreement, there are some important matters that you need to consider. Take a look at the following to see what they are.

Hire a Good Lawyer

A competent attorney is one of the most essential needs when it comes to entering a prenup. This means choosing someone who is well experienced, knows the current laws of your state, and someone you can consult regarding the legal matters surrounding the agreement. It is also better to find someone whose practice is closer to you. This will further help to hire someone who is versed in your state’s law. For example, if you live in Melbourne, look for prenup attorneys who practice online or simply Google for ‘property settlement law firm Melbourne’ and you will be able to find a good lawyer close to your area.

Disclosing Information about Your Property

One of the benefits of a prenup according to legal experts is that it builds better understanding between partners since they get to be transparent about their property and finances. So, when you are readying for the agreement, it is necessary to fully disclose your assets. This means gathering up every detail relating to your finances such as your bank statements, records of your bonds or stocks, retirement accounts, appraisal for your home, car or another vehicle you own etc.

These records also need to include those of your debts such as credit card debts or loan debts like student loans, mortgage as well as personal loans owned to family members or friends.

Determine Your Goals

When you enter a prenup, you need to determine what your goals are. For example, do you want to pass inheritance to children from previous marriages upon your death that is something you need to specify that when entering into the agreement because that is a matter that is outside your marriage. You also have to determine what is separate property which each of you have owned and which will be marital property.

Consider Inheritance

When you consider all your assets and finances, another additional thing you might need to consider is inheritance. Have any family member or friend named you as a beneficiary to inherit money property or stocks etc.? This is something that you need to think about before entering the agreement. You can consult your attorney regarding how to disclose it during the agreement.

While entering into a prenup is beneficial on several levels, if you do not follow the correct procedures, you can still get into financial losses or legal troubles. Therefore, consider all the above factors before entering the agreement. Whenever you are in a doubt you can consult your attorney so you can make wiser decisions.