Prenuptial agreements, also known as premarital agreements, are essential legal tools that couples can use to protect their assets and clarify financial responsibilities before marriage. As more people marry later in life, with established careers and assets, prenuptial agreements have become increasingly common. Whether it’s a first marriage, a second, or even a third, these agreements offer invaluable protection, particularly for those with children from previous relationships or significant premarital assets. Understanding how prenuptial agreements work can help you secure your financial future and provide peace of mind. Here is a guide to give you the confidence you need.
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Understanding Prenuptial Agreements
A common misconception about premarital agreements is that only very rich or famous people need one. This could not be further from the truth. Prenuptial agreements can be extraordinarily helpful for people of all walks of life. Another common misconception about prenuptial agreements is that they set the marriage up for failure, or that the parties are not feeling confident about their upcoming marriage. From a different point-of-view, completing a prenuptial agreement can be a way to care for your partner at a time when you are full of love for them before a wedding.
It seems that more people are getting married later in life than ever before. Years ago, when people married at younger ages, most had not yet established themselves and did not have property prior to their marriage. Now that the average age for a first marriage in the United States is into the very late twenties and early thirties, marrying parties are more concerned about protecting their property in their marriage. That is where a premarital agreement can be very helpful.
Related Article: 5 Signs You May Need a Prenup Agreement
Key Benefits of a Prenuptial Agreement
Prenuptial agreements provide numerous benefits for couples, including:
- Protection of Premarital Assets: Secure your individual property and financial assets acquired before marriage.
- Safeguarding Family Heirlooms and Businesses: Ensure that family treasures and business interests remain with their rightful owner.
- Estate Planning Support: Protect your children’s inheritance from previous relationships.
- Clarity in Case of Divorce: Reduce conflicts and legal disputes in divorce by clearly outlining financial rights and obligations.
Legal Requirements for Enforcing Prenuptial Agreements in Illinois
For a prenuptial agreement to be binding in Illinois, it must meet several key requirements:
- Written Agreement: The prenuptial agreement must be in writing. Oral agreements are not enforceable.
- Voluntary Execution: Both parties must enter into the agreement voluntarily. Neither party should be under duress or coercion.
- Full Disclosure: There must be a full and fair disclosure of each party’s assets, liabilities, and financial information. This ensures that both parties have a clear understanding of what they are agreeing to.
- Fair and Reasonable Terms: While Illinois does not require that the terms be equitable (think: 50/50), the agreement cannot be unconscionable or grossly unfair. Courts will refuse to enforce an agreement if it is deemed to be overly one-sided.
- Independent Legal Counsel: While not required, it is highly advisable that each party have their own independent legal counsel. This helps ensure that both parties understand their rights and obligations under the agreement and can grant more legitimacy to the agreement.
- Proper Signing/Execution: The prenuptial agreement must be signed by both parties before the marriage takes place.
How to Create a Valid Prenuptial Agreement
When a client approaches our office seeking a prenuptial agreement, they can expect to experience the following steps:
- A full disclosure of their assets and liabilities, including their debts, property, business interests, property, and more.
- The drafting and negotiation process. As a general rule, we incorporate our clients’ wishes into the prenuptial agreement and may have some negotiation with the other side’s attorney to finalize the agreement.
- When the agreement is ready to be finalized, we schedule a time for the client and their partner to sign the agreement. During this, we make sure to provide witnesses to the signing, and a notary to finalize the agreement.
Example
Here is an example of when a pr-marital agreement might be useful: Consider Donna and David, a couple who were married for ten years and have two children, Jackie and Johnny. After their divorce, Donna keeps the marital home to provide stability for her children. A few years later, Donna becomes engaged to Mickey, who plans to move into her home. To ensure that her children can continue living in the family home even if her marriage to Mickey ends, Donna decides to create a prenuptial agreement. This agreement would protect Donna’s home, safeguarding her children’s future and providing her with peace of mind.
Conclusion
A premarital agreement is more than a legal document. It is a proactive step toward securing your future and may be beneficial to parties that are seeking to keep what assets they have before marriage should the marriage later dissolve. Many people look at premarital agreements negatively; however, they can be a very useful tool and create some certainty in a situation that married couples don’t want to find themselves in. If you are interested in having a premarital (prenuptial) agreement drafted, or, if your partner has had one drafted and you need it reviewed with you before you sign it, contact our experienced family law attorneys today to schedule a consultation and protect your future with a tailored prenuptial agreement.
