Why Is Financial Disclosure Important for a Prenuptial Agreement in Louisiana?

couple signing prenuptial agreement

There is a strange stigma around prenuptial agreements, with many under the assumption that those who sign this document are entering a marriage that won’t last. However, this is far from the truth. A prenup is a tool that helps protect both spouses’ finances should they get divorced. In order to enter a prenuptial agreement, both parties must present a full financial disclosure report. If you’re unsure what this document is and why it’s required, you’ll want to keep reading. You’ll also discover how a Monroe, Louisiana prenuptial agreement lawyer can help you navigate the process.

What Is a Prenuptial Agreement?

A prenuptial agreement is a great way to make the divorce process simple. When you create a prenup, you agree to the terms of your divorce before you are even married. Doing so helps to avoid a lengthy court battle down the line.

For example, if one spouse owns a business, they may want to sign this agreement to ensure they retain full ownership if the couple divorces.

Though some may be offended by the idea of their partner asking for a prenup, it’s a great way to protect yourself. As money issues can often be a significant contributing factor to divorce, a prenup helps ensure both you and your spouse are protected. For example, if your spouse incurs debt and you choose to separate, the prenup can prevent you from getting stuck with some of that debt.

Why Is Financial Disclosure Essential?

Financial disclosure helps ensure each spouse understands the terms they will agree to. By informing your spouse about all your assets and debts, you’re creating transparency, allowing them to adjust the conditions they are willing to agree to based on the information you’ve provided.

Without full financial disclosure, you could unknowingly give up significantly more during the divorce than your spouse. Under these circumstances, your prenup could be ruled invalid by the court due to the failure to disclose the extent of your assets, debts, and potential inheritances. Rather than the quick and easy separation you could have had with the help of the prenup, you will enter a long and arduous litigation process, causing you to lose more in the long run.

How Can an Attorney Help?

When you and your partner want to create a prenuptial agreement, contacting an attorney is crucial to protecting yourself. Whether you want to ensure that your significant other discloses all of their finances or you’re worried about omitting an asset, a competent attorney can help walk you through the process.

If you’re ready to create a prenuptial agreement with your partner, we’re here to help. At Breithaupt, DuBos, & Wolleson, we have the experience you need to make this process as simple as possible for you and your spouse. Reach out today to connect with one of our competent attorneys to learn how we can assist you.

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