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5 Red Flags Of An Unfair Prenuptial Agreement
Before clients say “ Till death do us part ,” make sure they ’ re on the same page .
By Lisa Zeiderman
IT Is A commoN occurreNce : A sooN-To-Be ex-spouse trying to dig himself out from a terrible contractual agreement signed before marriage . While it is wise for two people to thoroughly understand each other ’ s finances and ultimately execute a prenuptial agreement before they get married , it is also critical that they don ’ t sign away significant rights to assets and support that they may need later in their lives .
Here are five red flags to look for as you review your prenup — and before you sign .
There Is Not Enough Time To Carefully Review And Give Input
Timing is everything . If the prenup is arriving for your review and the wedding is imminent , this may be a sign that your future spouse or their family is trying to pressure you into signing a contract that you should not and would not have signed if your mind were clear and you didn ’ t have wedding plans looming .
Do not sign it immediately . show it to an attorney . If the attorney advises you not to sign it , then don ’ t . Get to the negotiating table and discuss the terms , even if it causes stress in that moment .
In other words , an unfair prenup does not guarantee a “ happily ever after ” just because it seems to make things happier right now .
Spoken Words Are Not Aligned With What Is Written “ What ’ s mine is ours .” ( Is it really ?) Don ’ t presume what your partner is saying to you is reflected in the contract that your partner wants you to sign — unless it is . When someone generously says , “ What is mine is ours ,” that is wonderful . But as has been said before : “ Trust but verify .” No matter what you have said to each other , if you sign a prenuptial agreement contrary to those statements , that prenup is all that will matter in the eyes of the court , if you ever end up there .
Actions are usually louder than words — except when the words are written in a fully and properly executed prenuptial agreement . In that case , the paper has the final say .
The Language Is Very Vague
To have a fair discussion about their prenuptial agreement , a couple must be honest and transparent about their assets , liabilities and income . To that end , you should both exchange financial documents , including personal financial statements , bank account information and income tax returns .
If you are reviewing a prenup that is vague and lacking in the financial detail department , or if your soon-to-be financial partner ( which is what your future spouse is under the law ) is less than eager to be transparent , you may need to have a very honest discussion with yourself about what you expect from
56 | financial advisor magazine | may 2022 www . fa-mag . com