Do you happen to be wearing a shiny new engagement ring or did you propose over the holidays? If so, congratulations! While the excitement of wedding planning is in your forethought, remember to plan for your future after the date of marriage as well. In particular, think about a “prenup,” legally named a premarital agreement. While people generally do not want to plan for the “ending” before the “beginning” starts, having an upfront conversation about the possibility of separation could save you and your soon-to-be spouse from an inevitable hardship should your marriage end. During this current time of love and communication, you should definitely plan for a lifetime together; but why not create a safety plan together should the marriage not endure the test of time as well?
In North Carolina, soon-to-be spouses can enter into a premarital agreement anytime before they are actually married. Ideally, it is best to have the premarital agreement drafted as early as possible and signed at least thirty days prior to the actual wedding date. The premarital agreement must be in writing and signed by both parties to be enforceable in the future. Although not required, it is advisable that each party have legal representation in the negotiations and drafting of the agreement. This is not meant to create any adversarial tactics, rather have legal representation ensures that both parties have a full understanding of the legal obligations assumed by marriage and any legal rights adjusted by a premarital agreement. The parties and their respective attorneys can work together to draft an agreement that provide clarity and transparency.
Why do you need a premarital agreement? A premarital agreement can be drafted to fit you and your-soon-to-be spouse’s unique needs and desires. If your marriage were to dissolve, the premarital agreement governs what should happen to your property, debts, and expenses instead of North Carolina law. A premarital agreement can solidify separate property interests and marital property interests, including business interests, home ownership, debts, etc. The premarital agreement can also layout a roadmap on resolving then-existing issues should the marriage end. Often, parties that separate with a premarital agreement are able to effectively resolve all issues without Court intervention and generally do not struggle with the severe emotional and financial aspects of divorce seen in cases without an agreement.
Based on the number of high litigation and high conflict divorces I experience, I would recommend that everyone have the discussion surrounding a premarital agreement, regardless of the current financial situation of both parties. Why? Because we cannot predict the future. Such a discussion is especially important if a soon-to-be spouse has children from a previous marriage, owns a business, has significant assets, has concerns about debts coming into the marriage, is delaying or foregoing pursuit of a career, or simply wants financial transparency. I have numerous clients who say “I wish I had a premarital agreement” while we are sitting at trial or mediation; because if they had one, they would have been prepared, known what to expect, and not enduring the trauma of the lengthy divorce process.
If you are engaged and would like to discuss your legal rights, our Modern Legal team is here to help.
Please note: these educational materials are based on North Carolina law where my legal practice is based. While the insights may have wide applicability, readers should consult with an attorney regarding the specific laws in their state or country.
Written by: Theresa E. Viera
