Premarital agreements and prenuptial agreements are interchangeable terms and have the same meaning. These agreements are contracts created before the marriage or civil union of two parties. The contracts are legally binding and detail how things such as assets, debts and spousal support will be divided and/or distributed if one party passes away or the couple dissolves their marriage.
While it’s ultimately up to the couple to decide if getting a prenuptial agreement is a good idea, these agreements are highly recommended in certain situations. Some scenarios in which a prenuptial agreement may benefit both parties include:
In North Carolina, prenuptial spousal agreements can include:
Prenuptial agreements in North Carolina help protect one or both spouses’ assets in the event of a divorce or separation. Both parties need to understand the limitations of North Carolina law in areas such as child support, custody and illegal matters.
Here’s a breakdown of what North Carolina prenuptial agreements can and can’t protect.
When negotiating a prenup, one of the most important things to remember is that both parties must be fair. While your prenup doesn’t have to divide everything exactly down the middle, judges have the right to throw out agreements that don’t follow regulations or appear to favor one party over another to an extent the terms are unconscionable.
Each party should show a willingness to compromise, and this can easily be achieved by simply considering each other’s needs and plans. For example, if one party has been saving for years to start their own business, they may prefer to keep these assets separate from the joint assets. Alternatively, one party may have significant debts that the other party doesn’t want to take responsibility for, so the compromise may be an addition to the agreement that clearly states the first party is solely responsible for their debt.
Here are a few more helpful negotiation tips:
Per North Carolina’s Uniform Premarital Agreement Act, unconscionability and involuntary signing of the contract are the two main factors that invalidate a prenuptial agreement in the state.
Unconscionability is typically used to invalidate a prenup in North Carolina when one party is forced to sign the agreement without the ability to have it reviewed by counsel or time to consider the terms, or when the terms are so one-sided that it is unfair that only one side benefits from the agreement.
If either spouse believes they were forced or coerced into signing the prenuptial agreement and can prove this in court, a judge may deem the contract unenforceable. Involuntary document signing is a fairly common reason for prenuptial agreement invalidation.
If a prenuptial agreement states both parties agreed to no spousal support, this may be enough to halt the alimony process. In North Carolina, parties can waive their rights to alimony in a premarital agreement.
For help with a prenuptial agreement or any spousal agreement, contact Freedom Law today!
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