Top 10 Reasons a Premarital Agreement May be Invalid

A topic that comes up periodically is prenuptial agreements. Sometimes people plan ahead, think through the issues and come up with appropriate agreements that actually benefit both parties, or at least don't take advantage of one of the parties. As helpful as they can be, most often we hear about them when a couple is splitting up and there will be a huge fight unless the prenuptial agreement is valid.

Stephen Worrall, who writes one of my favorite blogs, the Georgia Family Law Blog, had a recent post about that issue.

"FindLaw has a list of 10 reasons which may cause a prenuptial agreement to fail. For more details, check out the original post, but this is a list of those reasons:

• No written agreement.
• Not properly executed.
• You were pressured.
• You didn't read it.
• No time for consideration.
• Invalid provisions.
• False information.
• Incomplete information.
• No independent counsel.
• Unconscionability. "

If you are wanting to end up with an enforceable prenuptial agreement, make sure that the 10 problems are avoided. Taking shortcuts and rushing through the preparation and signing of the agreement will almost guarantee that it will be unenforceable. Clearly, this is something that you need a lawyer to work with you and another lawyer for your soon-to-be spouse. If you invest the time and money up front, you should save a lot more at the end, if there is one.

Will You Marry Me? I Have Health Insurance

Charles Jamieson, a Palm Beach, Florida attorney recently pointed out a subtle trend with families in an excellent post about the role of health insurance in family life. He wrote the following in his Palm Beach County Family Law Blog:

"Getting married for money or for wealth dates back to genesis or even earlier. Divorce attorneys and most other people are aware of this dynamic and probably know people who have married for this reason. However, getting married for health insurance coverage is not so well known. This lesser known behavior should not be surprising, given the difficulty people have in today's society finding and affording reasonably priced health insurance. Consequently, for some modern couples, the words: 'In Sickness or in Health' have taken on an actuarial meaning. These couples may not be marrying for 'richer or for poorer'. Instead, they may be getting married for affordable co-pays and deductibles. These couples weigh any marital doubts that they may have against the medical needs that they do have. For the same reasons, a spouse may prolong an unhappy marriage so that they can maintain affordable health insurance coverage. With either scenario, the psychological pressures can be immense. A recent article in The New York Times profiled a number of couples, who have dealt with the motivation of obtaining health insurance in terms of becoming married or divorced. To review this article, please click here."

Charles points out how economic and/or medical conditions can directly affect one's marital status, both encouraging some to marry and encouraging some to stay married. With medical expenses being one of the leading contributors to price increases, the situation is likely to become more common.

Another way to deal with the situation is to use a prenuptial or post-nuptial agreement. Those agreements can be used for estate planning purposes as well as controlling the impact of debt and medical expenses. Parties can technically remain married, which can keep insurance in effect, but have all of their assets and debts divided by a binding agreement. Likewise, an older couple might marry to maximize some retirement or insurance benefits, but operate under a prenuptial or post-nuptial agreement for tax or family (keeping peace with their children) reasons.

Sometimes attorneys are able to help people come up with creative solutions for emotional and financial difficulties. The best advice: Look (go see an attorney) before you leap. Find an attorney with the experience, expertise and willingness to be creative. Solutions are available if you look in the right places.

8 Reasons Why You Should Get A Prenuptial Agreement

Thanks to Michael Sherman's Alabama Family Law Blog, I saw a great post that originated in the Prenuptial Agreements blog. That blog is obviously very specialized and seems to cover the subject from many different angles. I recommend that anyone thinking about a prenuptial agreement read through the various posts on different aspects of prenuptial agreements. The following is the post that originally appeared in the Prenuptial Agreements blog.

"A prenuptial agreement is an agreement between two people that deals with the financial consequences of their marriage ending.
All marrying couples have a 'prenuptial agreement' - it is known as 'divorce law.' However, a lot of people are unhappy with the way divorce law works, and prefer to take control of their lives, rather than leave it in the hands of the government. In these cases, it makes a lot of sense to get a customized prenup.

Getting a prenuptial agreement is particularly important in these 8 cases:

1. You are much wealthier than your partner. A prenuptial agreement can ensure that your partner is marrying you for who you are, and not for your money.

2. You earn much more than your partner. A prenuptial agreement can be used in many states to limit the amount of alimony that is payable.

3. You are remarrying. When you remarry, your legal and financial concerns are often very different than in your first marriage. You may have children from a previous marriage, support obligations, and own a home or other significant assets. A prenuptial agreement can ensure that when you pass away, your assets are distributed according to your wishes, and that neither your first family, nor your new family are cut off.

4. Your partner has a high debt load. If you are marrying someone with a significant debt load, and don't want to be responsible for these debts if your marriage ends, then a prenuptial agreement can help ensure that this does not happen.

5. You own part of a business. Without a prenuptial agreement, when your marriage ends, your spouse could end up owning a share of your business. Your business partners may not want this to happen. A prenup can ensure that your spouse does not become an unwanted partner in your business.

6. To prevent your spouse from overturning your estate plan. A prenuptial agreement can ensure that you estate plan works, and, for instance, ensure that a specific heirloom remains in your family.

7. You are much poorer than your partner. Just as a prenuptial agreement can be used to protect a spouse who is well off, a prenup can also be used to ensure that the partner who is weaker financially is protected.

8. If you plan to quit your job to raise children. Quitting your job will negatively impact your income and your wealth. A prenuptial agreement can ensure that the financial burden of raising the children is shared fairly by both partners."

If any of these situations apply, you should contact an attorney right away to discuss whether a prenuptial agreement is advantageous in your situation. There are many considerations to make in deciding whether to pursue or oppose an agreement, but the presence of one of these conditions should make you stop and think about the possibility of negotiating an agreement. Even discussing the issue with your fiance can lead to hurt feelings and stress at a sometimes very difficult time in your life, so proceed cautiously. But do consider taking action for the reasons listed above. If you don't act in time, you can always consider a post-nuptial agreement, but that might be harder to get your new spouse to agree to. The best course is to act before you get married.