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