A prenuptial agreement may be an ideal way to protect assets that you acquired before your marriage such as a car or Wisconsin home. It can also be used to protect ideas that may form the foundation of a company that grows to a $1 million valuation after a marriage is made official.
Elements of a valid prenuptial agreement
A prenuptial agreement is generally valid as long as it meets the criteria for a valid contract. Essentially, the terms must be agreed upon by parties of sound mind and who are not under any type of undue influence. In addition, the agreement must not be egregiously unfair to either party. If you cohabitate with your partner before getting married, any agreement reached before indicating your intention to get married may be converted into a prenuptial agreement.
Altering a prenuptial agreement
As with any other contract, the terms of a prenuptial agreement can be modified at any point, and they can also be challenged after divorce proceedings have begun. For instance, an agreement may be changed to allow your spouse an equity share of your company or a share of any equity in a home that was purchased prior to getting married. If significant changes need to be made after a wedding takes place, it may be best to opt for a postnuptial agreement. If part of a prenuptial agreement is invalidated, the rest of the document will typically stand.
In addition to protecting assets, creating a prenuptial agreement may help you learn how to communicate with your spouse. Furthermore, planning for a divorce before your wedding may be helpful if you have children as any future split will be easier to complete.