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Prenuptial Agreement - DOC by redpjd

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Prenuptial Agreement - Sets out rights of couples during and after marriage.

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									                                 PRENUPTIAL AGREEMENT

       THIS PRENUPTIAL AGREEMENT is made and entered into on this _____ day of
________, 20__, by and between RS, a resident of __________, State of ________, and JJ, a
resident of _________, State of ________, who shall be referred to herein as the parties. This
Prenuptial Agreement shall be referred to herein as Agreement.

                                        WITNESSETH:

       WHEREAS, the parties are presently engaged and intend to be married to each other
within the next year, at a date and place not yet determined, and

       WHEREAS, in anticipation of their marriage, the parties desire to establish and
determine the joint and separate financial relationships that will apply during their marriage and
upon the termination of their marriage, whether by divorce or death, and

       WHEREAS, information about each of the parties' assets, indebtedness and present
income has been exchanged by them prior to entering into this Agreement; a complete schedule
of the financial information for RS is contained herein as Exhibit A, and a complete schedule of
the financial information for JJ is contained herein as Exhibit B. Both exhibits are attached to
this Agreement and incorporated herein by reference, and

       WHEREAS, each party has had the opportunity to fully examine the financial disclosures
of the other party as shown in Exhibits A and B, and

       WHEREAS, each party enters into this Agreement freely, and neither she nor he is acting
under any duress or undue influence upon making her or his decision to sign the same.

       NOW THEREFORE, in consideration of the mutual promises hereinafter contained, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby and herein agree as follows:


                                           ARTICLE I
                                           Definitions

       A.      Effective Date.    The effective date of this Agreement shall be the date of the
lawful marriage of the parties to one another.
       B.      Separate Property. As used in this Agreement, the term Separate Property shall
mean all rights and interests in all real and personal property of any description, including partial
interests, which are owned by each party on the effective date of this Agreement.

       Separate Property shall include substitutions and exchanges for such property owned
before the marriage, and any proceeds therefrom, and from any income derived from such
Separate Property, and any property purchased from the proceeds or income from such Separate
Property. Separate property shall also include gifts and inheritances one party receives from a
third party after the effective date of this Agreement.

       C.      Passive Income.       Passive income is income derived from various investments,
including dividends, capital gains, interest, rents, royalties, distributions and other income that is
not earned through work as an owner, partner, officer or employee; passive income may be
marital or non-marital, and shall be distinguished as follows:

       D.      Marital income.

               (a)     Stated simply, marital income is income that is earned during the marriage
               from marital sources.

               (b)     If a party materially participates as owner, partner, officer or employee in
               a business operated by a trust, partnership, LLC, or other business entity, all
               income and distributions from said entity are to be treated as earned, and therefore
               marital income.

               (c)     Passive income derived from marital or community property shall have
               that same character once earned or accrued, and shall be considered marital
               income.

               (d)     None of the earned income of the parties during the marriage shall be
               considered the Separate Property of either party during the marriage

       E.      Non-marital Income.

               (a)     The term non-marital income means dividends, capital gains, interest,
               rents, royalties, distributions and other income accrued from property of a party
               owned prior to the marriage, but obtained after the effective date of this
               Agreement.
               (b)    The income derived from property and assets of any type shall have the
               same character for purposes of this Agreement as the property from which it is
               derived. Non-marital income from Separate Property earned or accruing after the
               effective date of this Agreement shall be considered the Separate Property of the
               owner of that asset.

               (c)    Non-marital income also includes accrued but unrecognized appreciation
               in the value of capital assets classified as Sepa
								
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