A prenuptial agreement (PA), simply stated, is an agreement that is entered prior to and in contemplation of marriage. There are many reasons people obtain a PA but the majority of the reasons are financially based. When trying to determine whether a PA is right for you, you need to consider the many pros and cons.
The Pros of a prenuptial agreement (PA) include
- reducing conflict during a divorce,
- avoiding expensive and time-consuming court proceedings,
- documenting each spouse’s separate property, and
- distinguishing what is pre-marital and what is community property.
Some Cons of a prenuptial agreement might include
- it is not very romantic to start your relationship off with a PA,
- they cannot include agreements on child support or child custody, and
- a court can choose to set the PA or its provisions aside.
Can a PA make a marriage better? Yes. If one side has assets that create improper motivations, a PA eliminates those incentives. Why introduce money into a marriage in a way that it will destroy the marriage? A PA lets everyone know that staying married is the preferred outcome and that any other end is not incentivized. It is hard to talk about but can be worth every penny.
PAs in Utah requires each spouse to list out their assets and the values of all of their assets. For example, the cars, houses, lots, boats, planes, and automobiles owned by each party and their values. The thought is that there should be no deception. Each party should have the straight scoop on the value of the other party’s assets. With that information, they are able to enter into a PA with their eyes open.
If you need experienced help regarding a prenuptial agreement, please give us a call.