A prenuptial agreement is an agreement between two spouses that outlines the property, rights and obligations of one spouse with regard to the other spouse. It is one of a number of types of agreement in which an exchange of property is made between spouses.
The things that should be a part of Prenuptial Agreement
For an agreement to be binding, both parties must seek and be represented by an independent lawyer. This can be a costly exercise. It may well, however, prove to be a worthwhile investment given the peace and security that an agreement can provide when it is checked by a lawyer. That said, you can get free prenuptial agreement template available online – that can be used to create a legally binding contract with no need to pay for the fees of an attorney. The document will ensure that both parties agree on the rights and responsibilities of each other as well as the division of the property.
What Should Your Prenuptial Agreement Include?
A Prenuptial Agreement should include:
Assets
What are the assets? The first thing that needs to be discussed is what exactly constitutes your assets. This can be tricky since many people don’t think about their assets until they need them. However, if you have any money saved away from your spouse, this would be considered an asset. If you own a home, this is also considered an asset. You may even consider things like retirement accounts, stocks, bonds, etc. as assets.
Liabilities
What are the liabilities? This is where you list everything that you owe. This includes debts, loans, credit cards, mortgages, car payments, student loan debt, etc. Anything that you owe someone else is listed here.
You can find free prenuptial agreement in Iowa templates on the web, which can be downloaded from free legal forms websites, and customized for specific uses.
Things to safeguard
How much do you want to protect yourself? How much do you want to keep from being taken away from you? A lot of people choose to protect half of their assets, but some people choose to protect 100%. Whatever amount you decide upon, make sure that you are comfortable with it. There should be a clear discussion beforehand, between you and your spouse-to-be, to ensure that your best interests are protected. You may find the definition of a prenuptial agreement here on Wikipedia.
Is a Prenuptial Agreement the Same as a Handshake Agreement?
Some people compare this with a handshake agreement. But the two are different. A handshake agreement is a simple verbal agreement between two people. Handshakes are common in personal relationships, but they can also be used to create a business relationship. If the parties agree to do business together, they shake hands to signify that they have reached an informal agreement. But prenuptial agreements are usually prepared by lawyers and accountants and are used to determine whether a deal makes sense from a financial perspective from the perspectives of both spouses.
