Published: Sunday, February 27, 2011
Prenup 101: Who needs it, how to do it
SACRAMENTO, Calif. -- As the busy summer wedding season approaches, it's a good time to consider a document with a decidedly ominous reputation -- a prenuptial agreement.
Basically, a prenup states your wishes for how your marital assets and debts would be handled in the event of divorce or death.
Who needs one? "If all you have is an apartment and a paycheck, then you don't need a prenup," said Sacramento lawyer Beth Appelsmith. "But if you have real estate, a business, children from previous relationships, then you do need one."
Older couples with children from previous marriages, established businesses or complicated investments may want to spell out which assets go where, often as part of their estate planning.
How do you do it? Nolo Press, which published a how-to book on prenups, recommends that couples do homework together, writing a draft of their financial preferences. Then it suggests heading to a lawyer's office.
Some advocates of so-called "collaborative" agreements suggest that a couple sit down, each with an attorney, to amicably devise a financial agreement that works for both sides.
What's required? It must be in writing. Both sides must wait seven days before signing. Partners must fully disclose all their assets and their debts.
In addition, if alimony or spousal support is involved, both sides should have an attorney's advice. And if one party's primary language isn't English, the prenup should be translated so there's no misunderstanding.
It's also recommended that couples review their prenup periodically, especially after 10 years or so.
Basically, a prenup states your wishes for how your marital assets and debts would be handled in the event of divorce or death.
Who needs one? "If all you have is an apartment and a paycheck, then you don't need a prenup," said Sacramento lawyer Beth Appelsmith. "But if you have real estate, a business, children from previous relationships, then you do need one."
Older couples with children from previous marriages, established businesses or complicated investments may want to spell out which assets go where, often as part of their estate planning.
How do you do it? Nolo Press, which published a how-to book on prenups, recommends that couples do homework together, writing a draft of their financial preferences. Then it suggests heading to a lawyer's office.
Some advocates of so-called "collaborative" agreements suggest that a couple sit down, each with an attorney, to amicably devise a financial agreement that works for both sides.
What's required? It must be in writing. Both sides must wait seven days before signing. Partners must fully disclose all their assets and their debts.
In addition, if alimony or spousal support is involved, both sides should have an attorney's advice. And if one party's primary language isn't English, the prenup should be translated so there's no misunderstanding.
It's also recommended that couples review their prenup periodically, especially after 10 years or so.
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