Five Reasons a Prenup may be InvalidPosted 06-28-12
Many wealthy people and celebrities use prenuptial agreements to guard their fortunes. However, prenups can be an excellent tool for any couple. A prenup can aid in establishing the financial rights of you and your spouse in the event of a divorce. A prenup may also be used to protect a business or other personal or familial assets. However, a prenup must be drafted correctly. Read on to see five common reasons a prenup may be invalidated by a court.
If a prenup is not properly executed, a court may invalidate the document. Both parties must sign the prenup prior to marriage. Some courts have even held that a prenup must be signed several days prior to the marriage ceremony to allow the parties ample time to review and consider the ramifications of signing the prenup. Almost always, a prenup signed at the marriage ceremony will not be valid.
If one party signed the prenup under duress, it may be invalidated. A party to a prenup, much like any contract, can not be pressured or forced into signing the document.
If one party fails to fully disclose all financial information, the prenup may be invalidated. Both parties must fully disclose all assets and liabilities for a prenup to be valid. Think, full disclosure.
A prenup may be invalidated if it is unconscionable. This means the prenup can not be so one sided or so grossly unfair as to cause severe financial hardship to one party while the other party prospers.
Both parties must have access to legal representation or the prenup may be invalidated. Both parties must be allowed to have an attorney review the prenup to ensure their rights are properly covered. Furthermore, a separate attorney must be used for each party.
If you are considering a prenuptial agreement or would like more information to determine if a prenuptial agreement is right for your specific situation, contact Levy & Associates today to schedule an appointment with one of our experienced attorneys. Remember, knowing the difference means making the difference.