Prenuptial agreements, often referred to as prenups, are legal documents that couples enter into before marriage to outline the division of assets and responsibilities in case of divorce or death. While they may not be the most romantic aspect of wedding planning, prenups can provide both parties with peace of mind and financial security. When it comes to drafting a prenuptial agreement, one of the most critical components to consider is the division of property. Know about the key property aspects to include in a free prenuptial agreement form.

Assets and Liabilities Disclosure

Full disclosure of assets and debts is the foundation of any prenuptial agreement. Both parties should list their individual assets, such as real estate, investments, and business interests, as well as liabilities like loans and credit card debt. This transparency is crucial to ensure fairness.

Property Division

The prenup should clearly outline how property acquired during the marriage will be divided in the event of divorce. This can include specifying a percentage split or deciding which assets belong exclusively to each spouse.

Separate vs. Marital Property

Determine what constitutes separate property (owned before the marriage) and marital property (acquired during the marriage). Specify how each type of property will be treated in the event of divorce.

Appreciation of Separate Property

Address whether the appreciation of separate property during the marriage will be considered marital property subject to division. Refer to a free prenuptial agreement template in Virginia available at free legal forms websites for this purpose.

Inheritance and Gifts

Clarify how inheritance and gifts received by one spouse during the marriage will be handled. This can include whether they will remain separate property or become marital property.

Business Interests

If one or both spouses own a business, the prenup should detail what happens to the business in the event of divorce. This could involve buyout provisions or the sale of the business.

Spousal Support

Discuss whether spousal support (alimony) will be paid and under what circumstances. You can include terms that limit or eliminate spousal support altogether.

Retirement Accounts

Specify how retirement accounts and pension plans will be divided if the marriage ends. This often involves creating a Qualified Domestic Relations Order (QDRO).

Debt Responsibility

Determine which spouse will be responsible for any marital debts, such as mortgages or joint loans.

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Carl writes often about legal drafting and help.