If you have a multitude of assets you want to protect from a potential divorce, you may turn to a prenuptial agreement to achieve this goal.
If the prenuptial agreement is set up incorrectly, however, courts may deem it unenforceable, exposing your assets to division during a divorce.
Lack of full and fair disclosure
According to FindLaw, you must disclose your entire financial situation to the other party for a prenuptial agreement to be enforceable. This includes your property, earnings and liabilities. If you do not disclose your financial situation completely, the other party must sign a waiver forfeiting the right to full disclosure.
If you present a prenuptial agreement that does not disclose your beach house, for example, the other party could argue in court that he or she would not have signed the prenup if you had disclosed the property. If you truly want to protect your assets, it is important to be honest about them.
Lack of attorney consultation
The courts may also prevent your prenup from holding up if the other party signs without consulting with his or her own attorney. Again, an exception to this rule is if the other party signs a waiver, relinquishing the right to legal counsel. Prenups are apt to be lengthy and complex. It is important that both parties understand the legal implications of signing the document, which is why legal counsel is important.
While a prenuptial agreement is a great tool for protecting those with high net worth, it is important that the document is carefully drafted and executed. There is nothing worse than spending time and money on a prenup that the courts deem unenforceable during a divorce.
