When Tennessee couples get engaged, they may decide to have a prenuptial agreement. While people may know they should include their finances in this agreement, they may wonder what else to include. Spouses are supposed to make full disclosures of their assets and liabilities when they negotiate a prenuptial agreement. It is important to consider the contents of a prenup, as it can make things easier for people down the road.
When people write their prenuptial agreement, they should usually include their debt. Brides.com says couples should list out how much debt they have and which spouse is responsible for paying it off. This can help ensure that one spouse is not liable for the debt the other spouse accumulated before the marriage. If either person has a business, it is a good idea to include this in the prenuptial agreement. People should typically specify who owns the business, as well as any value it accumulates after the marriage. Additionally, women may want to include their engagement ring in the agreement. Because this ring is a gift from one person to another, it usually is not considered marital property. However, including it in the prenup may help couples avoid conflict if their marriage dissolves.
Some people may not consider their estate plan when they get engaged. According to FindLaw, people who already have an estate plan should make sure they include this in the prenuptial agreement. This allows a person’s estate plan to remain intact after a divorce. People may also want to consider financial elements, such as their retirement account and bank accounts. Sometimes people may have joint investments, such as stocks. Couples may want to specify who owns each investment.
Additionally, it may be a good idea to divide property in the prenup. Each member of the couple may bring several physical assets to the marriage, such as furniture and china. Including these items in the prenup can help ensure that each person walks away with the physical items he or she brought to the marriage. Additionally, this list of physical assets should include items the couple purchased together. Dividing the property in the prenup may help people prevent conflict in the event of a divorce.
Remember, a prenuptial agreement is a contract, and it can only control what you include in the contract. Therefore, it’s important to ensure that the contract is inclusive of all items of concern.