A properly executed prenuptial agreement can be equated to a good insurance policy. The hope is never to have to use it, but if the time comes and the situation arises and it’s needed, it can be very useful in saving significant time and money. Traditionally, many Alabama residents contemplating tying the knot would take offense if their intended spouse even hinted that a prenup should be considered, but more and more people are realizing it can be beneficial to both parties to at least have a conversation about financial expectations and whether a prenup is a necessary component of the marriage.
Legal experts emphasize the fact that although prenups are a specific type of contract, they must comply with basic contract principles. Typically, if enforcing a prenup is at issue, consideration and duress are matters to be considered. Both parties should freely enter the agreement with a complete understanding of what they are giving up. While various issues can be addressed, most often one party will agree to settle for less in the event of a divorce than the law would otherwise provide for if no prenup existed.
This is especially true where one or both parties own existing businesses at the time of marriage. How the business is evaluated at the time of marriage, how it’s evaluated if the two separate and ultimately divorce, what percentage of the revenue of the business during marriage is to be considered marital property and which party can potentially buy the other out in the event of marital dissolution can all be contentious issues.
Divorce involves important legal issues that must be decided. A contested divorce is stressful and possibly quite expensive, while mutual agreement can make matters easier for all. An experienced family law attorney can offer guidance on all matters impacting divorce, including property division, alimony and child support.