Minnesota readers probably have some general perceptions and opinions of prenuptial agreements but what readers may not have necessarily understand is the delicate nature of drafting a good prenuptial agreement. The effect of a poorly drafted prenuptial agreement can be devastating, going so far as to leave the prenuptial invalid. There are key elements to consider when drafting a prenuptial agreement in order to ensure the protection of assets and parties in a high-asset divorce.
One of the most common reasons why a prenuptial agreement is deemed invalid or void is because both parties were not represented by independent legal counsel during the preparation. It is the role of the attorney in the drafting stage not only to perform the technical work of drafting but to ensure that his or her client fully understands the agreement and that the signing is done completely voluntarily.
Another common failure is that one party, typically the party with greater assets, fails to fully disclose all of his or her financial assets, properties and debts. If this occurs, the court may view the lack of disclosure as deceptive and may invalidate the entire agreement. That is why it is so important to ensure there is a full and accurate disclosure of all of the relevant financial information in the prenuptial agreement itself.
While these are just two examples, there are many other ways a prenuptial agreement can be found invalid or have provisions stricken by the court. With so much at stake in a high-asset divorce, from family-owned businesses, financial holdings and real property, it is vital to make sure that the agreements are done right. In the end it will save the couple time and money and make the process of complex asset division far more agreeable.
Source: Huffington Post, "10 Common Prenup Pitfalls," David Centeno, November 4, 2013
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