Wednesday 21 November 2012

Should You Get Prenup Or Preregistration Agreement?

By John Riteorine


A lot of marriages end in divorce. In the United States, the incidence of divorce is currently at 4.95 per 1,000 people. Consequently, the US has the highest divorce rate worldwide. The United Kingdom ranks fourth, with a divorce rate of 3.08 per 1,000 people, and thus has the most number of divorces among European nations. Both countries are above the global average, currently at 1.3 per 1,000 people. Considering the frequency of divorce, a prenuptial agreement is a necessity, even in the United Kingdom where historically have not been regarded as legally binding. It can be remembered that it was only two years ago (2010) in a divorce proceeding between German heiress Katrin Radmacher and her husband, Nicolas Granatino, when the UK Supreme Court determined that such contracts are legally binding, effectively altering the landscape of divorce settlements.

What is a prenuptial agreement?

A prenuptial agreement is a type of an agreement which partners draft and sign prior to getting married and these documents detail how the partners will hold their property during their union and what should happen to their property and maintenance payments in case they get divorced. In jurisdictions where same-sex civil partnerships are permitted, couples can get a preregistration agreement to determine appropriate property division once their civil partnership is dissolved.

Conditions to satisfy when making prenup agreements

First and foremost, the parties must consent to this contract in their own free will. Informed consent is also necessary. As such, both sides usually must have independent legal counsel so that they can be advised about the ramifications of such agreement. Both partners should also agree to full financial disclosure prior to the agreement is made.

Is getting a preregistration or prenup agreement worth it?

If you own considerable assets that will be at stake in the event of a divorce or dissolution of civil partnership, yes, such agreements are advantageous. With these agreements, you avoid being forced to share all your wealth with your partner. Also, having one will ensure that you and your companion will not argue about issues relating to property, making it more possible for you to have a friendly separation. In countries or states where these agreements are not upheld in their entirety, they will still impact the court's determination in relation to property division.




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