Prenuptial agreements reduce much of the financial litigation that may result from a divorce.
A prenuptial agreement is executed prior to the marriage and is designed to govern the distribution of assets and debts in the event of a divorce. In Delaware, a prenuptial agreement can also be established for a finite period of time, rather than being triggered only by a divorce, in order to give the couple assurance that the marriage will last.
Prenuptial agreements can be used to protect a party entering a marriage with a disproportionately large share of assets, to protect the wishes of a spouse if she or he lacked a valid will, to lessen conflict from a dissolving marriage, and to lessen the financial burden on both parties. However, a prenuptial agreement’s primary function is to serve as a predetermination of the distribution of assets and debts, requirement of alimony, and preservation of assets for future heirs.
It is important to note that prenuptial agreements can be overturned in Family Court in the event of fraud, nondisclosure of finances by a given party, or if the agreement was entered under duress and/or misinterpretation. Thus, it is imperative that couples fully understand their financial rights and responsibilities before entering into a prenuptial agreement.
Article provided by Tabatha Castro, The Castro Firm