Pre-Nuptial Agreements
Pre-nuptial Agreements are becoming increasingly common and are most often used when there are significant pre-marital assets, which has become a growing trend over the past several years as people are marrying later into their twenties and thirties or in cases of re-marriage. It is important to know that when entering a Pre-nuptial Agreement there are three main requirements for such Agreements in order to be valid and therefore enforceable.
First, it is important that neither party be coerced or under duress when entering such an Agreement. Second, there must be an adequate level of financial disclosure of all assets and debts, so that the agreement is reasonably “fair.” Finally, it is important that both parties receive independent representation by counsel.
Pre-nuptial Agreements, while constituting a contract between two competent adults, are generally binding on both parties behalf when the above criteria is met. However, they are still subject to the same loop holes of any agreement related to persons who are or plan to be married. Justification for modification of such agreements generally requires that changes be unanticipated, substantial and non-temporary.
In order to ensure that a Pre-Nuptial Agreement is properly executed and meets all requirements so that it may be enforceable if challenged, it is important that each party consult with an attorney, especially as each Agreement and enforcement thereof is fact sensitive and determined on a case by case basis.
