PRENUPTIAL AGREEMENTS

Prenuptial agreements have become an important estate and financial planning consideration.

Persons considering marriage willl be pooling their salaries, their 401(k) accounts, pension plans, and even the increased value of a home or business once a partner brings it into marriage. Prenuptial agreements are especially useful if you have children from a previous marriage or important heirlooms that you want to keep on your side of the family.

You may want certain assets to pass to the children of a first marriage.  Without proper planning and an agreement in place, your spouse may inherit these assets and pass tthem to their heirs.

A prenuptial agreement allows a couple to override state laws governing how wealth is split up, but only if done correctly.

The following help ensure the validity of a prenuptial agreement:

• A Prenuptial Agreement must be in writing and signed by both spouses. A court will not enforce a verbal agreement.
• The Agreement will be invalid if one spouse is pressured into signing that by the other spouse. It is a good idea to make sure the contract is signed at least 30 days before the wedding to avoid the appearance of coercion.
• Both spouses must fully disclose all their assets and liabilities. If either spouse lies or omits information about his or her finances, the agreement will be invalid.
• The Agreement must contain no invalid provisions. Spouses can agree to most financial arrangements, but a prenuptial agreement that modifies child support obligations is illegal. Minnesota law says that a prenuptial agreement will not be enforceable if it is “substantially unfair” at the time of execution or at the time enforcement is sought.
• Regardless of whether it is required by state law, it is a good idea for each spouse to seek the advice of separate attorneys before signing any prenuptial agreement.
• Each spouse must be given a sufficient amount of time to read, understand, and consider the document before signing it.