When creating your prenuptial agreement, leaving out small assets here and there may not feel like a big deal. In reality, full financial disclosure is a necessary part of the prenup process. A divorce is already a difficult process, and failing to fully disclose your finances can further complicate things. Read on to learn more about prenuptial agreements and the importance of full financial disclosure.
What is a Prenuptial Agreement?
A prenuptial agreement is a legal document that is created and signed before a couple is married. It states how the couple’s assets will be divided in the event of a divorce or death. A lot of couples avoid prenuptial agreements because the conversation surrounding them can be uncomfortable. Prenuptial agreements do not imply a future divorce. Instead, they simply protect your and your future spouse’s assets. It is always a good idea to plan ahead, and this can mean covering all your bases. If a couple does not create a prenuptial agreement and later changes their mind, they can create a postnuptial agreement. This is the same document, with the same purpose, but it is created after the marriage instead.
What Could go Wrong?
In order for a prenuptial agreement to be considered valid, it must meet the following requirements:
- It must be executed voluntarily
- It must include a full financial disclosure
- It must be fair and just
- It must be notarized
- It must be signed before the marriage occurs
If these requirements are not met, the prenuptial agreement likely won’t be considered valid in the eyes of the law, and a lot of issues can occur. For example, if you do not fully disclose your finances, your prenuptial agreement may be invalid in the event of a divorce, which will likely lead to litigation– something many divorcing couples aim to avoid. Often, a valid prenuptial agreement can shorten, or prevent litigation completely. But, if your prenup is found to be invalid, you will likely have to go to court to determine the division of assets. You may be involved in a long and expensive trial, and lose some assets that you would have maintained if your prenup was valid. Additionally, the failure to fully disclose your finances may even be considered a fraudulent act. This could lead to legal troubles for you in addition to your divorce.
If you are interested in creating a prenuptial or postnuptial agreement, contact our firm today.
Contact our Experienced Firm Today
Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.