Prenups are contracts, no way around that. but prenups are contracts between two people, who usually are not layers and who need to understand what the contract is saying. there for in this post I would explain some terms usually discussed when preparing a prenup. I hope to add to this post new terms over time. for a definition of a prenup itself and prenup meaning press here.
prenup terms: Marital Property
What part of the couple’s property is considered Marital Property?
The part that is considered Marital Property is the part of the property that the couple owns together. It includes anything the couple bought together. It is not important who paid for they share the ownership of it is Marital Property. A house or apartment you own together is Marital Property.
as a general rule when there is no prenup, each spouse is entitled to half the marital property in most states and countries.
prenup terms – Non-marital Property
you guessed it right- this is the opposite of the previous one.
all the assets that the couple doesn’t want to share. in a case of divorce, the non-marital assets remain in the hand of their owner and the other spouse can’t claim it.
on the prenup, you can specify a property that is non-marital therefore if a divorce occurs the property stays in your possession.
prenup terms – Sunset provision
sunset provision (clause) is a law or regulations will stop having an effect in some circumstances. a sunset provision in a prenup meaning: the prenup has a clause stating that the prenup will be bonded after a certain amount of marriage years. I such case if they divorce both spouses will be entitled to the full part the state law give in a case of divorce.
prenup terms – alimony
is payment one side of the divorce pays the other every month as ordered by the court.
usually, the spouse that earn more has to pay the other spouse the alimony. if your former wife marries again the payment stops.
a prenup can dictate the amount of the alimony.
prenup terms – Lifestyle clauses
Lifestyle clauses are some conditions decided on the prenup that concludes how one should behave during the marriage.
for instance, it could be decided that if a spouse cheats on the other spouse it would change the terms if the contract. it could also involve things like religion and religion customs.
as with many thigs concerning the law it changes from state to state and one should check the laws that affect him before constructing the contract. actually, this is the reason that if yu consider unique clause on the prenup it is most advised to get a lawyer from your state that is familiar with the local law and not some relative that likes TV lawyers series.
prenup terms – liability
liability is responsibility. when you have liability for something it means you responsible for it. if something goes wrong you may stand accounted for it. you can be legally sued. And if you have liability to your spouse debt this could mean that you will have to cover the debt for your spouse creditors.
a prenup can protect you in most cases so if your spouse has a debt don’t forget to put it in the prenuptial agreement so that if you divorce he gets the debt.
do you think a skipped some important term? comment and I will add it up.
prenup terms – Postmarital Agreement
Postmarital Agreement is very similar to a prenuptial agreement. the only different is that it is signed after the couple got married and not before.
prenup terms – cohabitation agreement
cohabitation agreement is an agreement a couple signed instead of a marriage. it is a legal contract between two individuals that choose to live together.
prenup terms – Child custody
from one side there is a child and from the other, there is a parent, what is the legal relationship between the two? you figured it out : custody. you care and protect children that are in your custody (i hope). child custody is many time the cause for bloody wars and fight between divorced couples.
pay attention because you CAN NOT decide who things concerning the child custody on the prenup.
in this method of equitable distribution the court divide the assets in a “fair” manner. there are no clear rules about the distribution of property. so judges try to estimate the contribution of each party to the assets. for example, the court can decide how much contribution had a housewife to the family and how it helped her husband to develop his business. by estimating this contribution the court will decide how to divide the property. in equitable distribution things that belonged to you before the marriage is yours only as well as gifts you receive or inheritance you got.
most states use the equitable distribution.
in states that use community property when a couple gets a divorce, their property is divided equally with no discretion. gifts and inheritance still belong to the spouse that got them. both spouse also shares the debt (hoe poetic) together and both are liable.
states that use community property are Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
California prenups star on the news because of all the famous people and the enormous sums of money discussed on the divorce.