Prenuptial Agreement

Document Sample
Prenuptial Agreement Powered By Docstoc
                                                                         NOVEMBER 2006

                                        The Dahkil Chapter of Lambda Sigma Upsilon Inc. presents,
                                        “Till Prenupt Do Us Part”: Prenuptial Agreements

                                        1.0 Purpose:                            vorce and any rights to spousal
                                                                                support during or after the disso-
                                             If every marriage was a Cin-       lution of marriage.
                                        derella story, then every one
                                        would live happily every after. In      1.1 History:
                                        reality about one in three of all
                                        first marriages end in divorce, and         Contrary to popular belief
  L A P L E N A                         50 percent of second and third          prenuptial agreements have been
                                        marriages end in divorce as well.       around for thousands of years.
  1.0                                   As a safeguard from unfavorable         During the 19th century, before
  Purpose                               litigation following a divorce,         the Married Women's Property
  What is a prenuptial agreement?       there is a preemptive device de-        Act of 1848, the agreements were
                                        signed to help secure an equitable      necessary for women in the
  1.1                                   dissolution between former cou-         United States. Until the act be-
  History                               ples if need be; this solution is a     came law, everything a woman
  Where does the concept of a pre-      prenuptial agreement.                   owned or inherited was trans-
  marital contract come from?                                                   ferred to her husband. If he died
                                             Prenuptial agreements are not      or divorced her, she could lose
                                        only rising in popularity, but legal    everything.
  1.2                                   and financial experts consider it
  Today                                 to be smart financial planning.         1.2 Today:
  How do prenuptial agreements          Nancy Dunnan, a New York City
  function today?                       financial adviser states, “Think of         Essentially marriage is a legal
                                        it as a business arrangement or as      contract between two people.
  1.3                                   an insurance policy to help re-         With regard to your property, the
  How it Works                          move some of the emotion that's         provisions of your marriage con-
  Why should you consider a Pre-        naturally involved. Marriage is         tract are governed by the laws of
  nuptial agreement?                    not just an emotional and physical      the state in which you live — and
                                        union -- it's also a financial union.   these laws determine how assets
                                        A prenuptial and the discussions        will be divided in case you di-
  1.4                                   that go with it can help ensure the     vorce — unless you and your
  Pros & Cons                           financial well-being of the mar-        spouse decide you want to write
  Is a prenuptial agreement right for   riage.”                                 your own marriage contract in-
  you?                                                                          stead. When you write your own
                                        What is a Prenuptial Agreement?         marriage contract, it’s called a
  1.5                                                                           prenuptial agreement.
  Conclusion                                A prenuptial agreement,
  Prenuptial agreements can offer       commonly abbreviated to prenup          1.3 How it works:
                                        or prenupt, is a contract by two
  the best legal defense against an
                                        people prior to marriage. The           Prenuptial agreements accomplish
  expensive divorce, but why else       content of a prenuptial agreement       three basic things:
  should you consider signing one?      may vary, but commonly includes            1. They keep property separate.
                                        provisions for the division of             2. They keep debt separate.
                                        property should the couple di-

LAMBDA SIGMA UPSILON LATINO FRATERNITY INC.	                                                  
                                                                                       NOVEMBER 2006

   3. They allow couples to set
   terms for spousal support.                     • Having a prenuptial marriage                   This Newsletter was designed,
     It is important to realize that a              agreement does not mean                           written, and edited by:
prenupt only applies to property.                   that a couple is anticipating
                                                    divorce.                                                 KEMET
A prenupt can also allow for the
waiver of spousal support. Some                   • Financial matters need to be
may provide for specific spousal                    faced.
payment agreements (for in-                       • Prenuptial agreements can
stance, that the wife will receive                  preserve family ties and in-
$2000 a month), but due to infla-
tion and other factors specific
spousal payment agreements are
                                                  • If your future spouse won't
                                                    sign a prenuptial marriage
difficult to uphold in court and                    agreement, it may be best to
are actually prohibited in most                     discover this before the wed-
states.                                             ding.

    The process for creating a                    Cons of       Prenuptial Agree-
prenuptial agreement is simple.                   ments:
Couples decide what works for
them and what stays with whom                     • Prenuptial marriage agree-
in the event of a failed marriage.                  ments can be set aside for
The deal between the couple will                    failure to disclose all assets,
generally be respected by the law,                  or if there is evidence of
but remember, this is a legal con-                  fraud, duress, unfairness, or
tract to which American contract                    lack of representation at the
law applies, and a divorce court                    time of signing the agree-
can and will overturn a private                     ment.
agreement if it finds that:                       • They are unromantic.
   1.The agreement is likely to                   • Prenups can give the appear-
   promote divorce — the con-                       ance that there is a lack of
   tract gives one or both parties a                trust between the partners.
   monetary incentive to leave.                   • A prenuptial agreement
                                                    could create resentment be-
   2.The agreement was written                      tween spouses.

   with the intention of divorce.
   3.The agreement was created                 1.5 Conclusion:
   unfairly — one of the parties
   was coerced into signing the
                                                   A prenuptial agreement
                                               should not be adversarial. It
                                               should not be, 'What can I get if
                                                                                               10th 2006
                                               things go wrong?' rather another
1.4 Pros and Cons
                                               method to build trust because
                                               you're talking right up front about
Pros of Prenuptial Agreements:
                                               what's important to you.

This newsletter is intended to progress awareness, as well as to augment questions and raise concerns. As always, Lambda Sigma Upsilon
Latino Fraternity Inc. encourages its readers to carry out their own research and draw their own conclusions.

LAMBDA SIGMA UPSILON LATINO FRATERNITY INC.	                                                                  

Description: This is an example of prenuptial agreement. This document is useful for conducting prenuptial agreement.