Signs You Should Consider a Premarital Agreement

New relationships bring a lot of different feelings. You might become infatuated with your significant other and look at them through rose-colored glasses. What does this mean? It means that you might not be looking at their shortcomings or faults like you should, especially if you are considering spending the rest of your life with them in marriage.

We recently read a story about a young man who fell in love with a woman and married her, much to his family’s objections. The short version is, the new wife liked to spend money, and when the new husband lost his job, she apparently picked up and left him. The young husband bemoaned the fact that there was no premarital agreement in place.

Now, not everyone is out to get you or your money, and it’s completely possible to have a happy life with a person whose spending habits are different from yours (provided, of course, you both have open and honest discussions about your finances from the start.) But you should also be realistic, especially if you have children, a business, or certain assets that you would like to protect. Today, we want to look at five signs that you should consider signing a premarital or postmarital agreement with your spouse.

1. Your future spouse has significant debt to their name

One of the biggest red flags that you should sign a premarital agreement prior to getting married is that your future spouse has significant debt to their name. This can be credit card debt, a large auto loan, or tuition loans. No matter the type of debt, you do not want to assume it under your name and credit score once you are married, which is what will happen. You will both become responsible for the debt. A premarital or postmarital agreement can help outline how debt will be handled should you file for divorce.

2. You are entering the marriage with significant assets

Even when you do not have to have millions of dollars to your name, it is still in your best interest to sign a premarital agreement if you have significant assets prior to marriage. Whether you have an inheritance you recently received, hold a stake in a family or other business, own multiple properties or have recently sold properties, it is beneficial to protect these assets legally. There is no guarantee that you will ever need to use the premarital agreement, but it is still a smart move to have one in place in the event that you get divorced.

3. You can plan for future financial decisions

A premarital agreement can outline future financial decisions should a divorce occur. For example, you can outline how much alimony you will pay and for how long, who will pay legal fees, how assets can be divided, and any other financial questions can be answered. Whatever is written in the premarital agreement must be followed so long as it is legally enforceable.

4. You are marrying for a second time

If this is going to be your second marriage, you should put a premarital agreement in place. Second and third marriages have a higher rate of divorce. Signing an agreement is a smart move for both of you.

5. One or both of you has children

While you cannot outline child support or custody issues in a premarital agreement, you can make decisions about trusts, property, and other important legal issues. A premarital agreement can ensure, for example, that children from your first marriage still receive any inheritances they stand to receive in the event of your death later. They can also dictate that certain assets remain separate property. For example, say your spouse is expected to inherit money from an estate with the understanding that, when he or she passes, any remaining money will be equally split among his or her children from a previous marriage. The premarital agreement can secure that money as separate property so that your spouse’s children will still receive the full amount of their inheritance.

What you need to create a premarital agreement in Charlotte, NC

There is a lot of information you will need to bring to your lawyer’s office in order for them to correctly draft a premarital agreement, including proof of income, proof of assets, a list of liabilities and any other relevant information.

Proof of income for a premarital agreement in NC

Proof of income includes any money you and your spouse earn or expect to earn. Documents needed include the following:

• Income tax return for the previous year
• Recent pay stubs
• Business tax return for the previous year
• Retirement plan annual statements
• Other recent financial documents

Proof of assets for a premarital agreement in NC

All assets owned by both spouses must be disclosed in order to create a premarital agreement. This includes both real and personal property. Documents you will need to provide your attorney include the following:

• A completed financial affidavit
• Recent copies of investment account statements
• Recent copies of bank account statements
• Copies of all real estate deeds
• Documents related to businesses you own in part of in whole by either spouse
• Copies of vehicle titles, bills of sales, and registrations
• The valuation estimate from an appraiser and tax bills for all real and personal property
• A complete list of jewelry, artwork, antiques, collectibles, and other items

Complete list of liabilities

Both you and your future spouse will also need to provide the attorney with a list of liabilities, including debt, to have included in the premarital agreement. This includes any of the following:

• A copy of any mortgages and notes on real property, as well as the status of any payments
• A copy of any notes or lien documents on tangible personal property
• A copy of any unsecured loans or notes
• A copy of any car loan documentation
• Credit card statements
• Student loan statements
• A copy of medical bills
• Tax bills

Are you planning to get married to the love of your life? Are you unsure if you need a premarital agreement or not? The Charlotte divorce attorneys at Epperson Law Group, PLLC, can answer all of your questions and help you draft an agreement that meets your individual needs. Call our office or submit our contact form to schedule a consultation today. We have offices in Charlotte, Weddington, Concord and Boone to better serve you.