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. As such, both parties must fully disclose all income, assets, debts, and financial obligations to ensure that there is a clear understanding of the agreement before entering. Without adequate disclosure, the courts may deem a prenuptial agreement unfair or unenforceable. 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.
What Do Prenuptial Agreements Commonly Address?
- How marital assets are divided during a divorce
- Ownership of businesses or other professional practices
- How certain accounts will be handled
- Responsibility for debts accumulated before or during the marriage
- If either spouse will receive alimony
- How will inheritances and family-owned assets be handled
It’s important to understand, however, that in Louisiana, prenuptial agreements cannot determine matters including:
- Child support obligations
- Child custody arrangements
These matters must be made at the time of the divorce in accordance with the best interests of the child standard.
What Makes Prenups Especially Important in Louisiana?
Louisiana adheres to the community property method of distributing marital assets, meaning the property acquired by the couple during the marriage, including debts, is generally considered jointly owned and therefore may be subject to equal division during the divorce. As such, many couples choose to establish prenuptial agreements as a way of establishing how their assets and debts will be divided in the event they should file for divorce to avoid disputes later.
Why Is Financial Disclosure Essential for All Couples in Louisiana?
Financial disclosure helps ensure each spouse in Ouachita Parish and throughout the state of Louisiana 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.
Information Commonly Included in Financial Disclosure
- Income from employment or self-employment
- Bank account balanced
- Retirement account and pension information
- Investments and stocks
- All current debts and liabilities
- Business ownership investments
- Student loans
- Anticipated inheritances or trust awards
- Real estate ownership
- Credit card balances
What Can Make a Prenuptial Agreement Unenforceable?
In Ouachita Parish and throughout Northern Louisiana, courts will examine a prenuptial agreement to determine if it is fair. As such, the court may deem the document unenforceable if:
- One spouse failed to disclose all assets and debts
- The agreement was signed under duress or coercion
- One spouse did not fully understand the terms
- The document is one-sided or would leave one spouse in financial hardship
- The prenuptial agreement was presented too close to the wedding date
- One spouse intentionally hid assets or financial information
Why Transparency Helps Protect Both Spouses
It’s important to understand that financial disclosure isn’t just important to ensure compliance with the law. Transparency can also ensure couples:
- Avoid future disputes regarding finances
- Establish expectations before the marriage
- Reduce the likelihood of litigation during a divorce
Unfortunately, many individuals view prenuptial agreements as a sign of a marriage doomed to fail without realizing that having these difficult or uncomfortable conversations can help ensure the strength of the marriage moving forward.
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.
How a Louisiana Prenuptial Attorney Can Assist
- Establishing a legally enforceable prenup
- Ensuring both parties have completed the necessary financial disclosure
- Identifying debts or assets that should be included in the discussion
- Explaining Louisiana community property laws
- Ensuring the document doesn’t contain errors that can invalidate it
Contact Our Ouachita Parish Family Law Firm Today
If you’re ready to create a prenuptial agreement with your partner, we’re here to help. At Breithaupt, DuBos, & Wolleson, LLC, 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.