North Carolina residents who are considering getting married likely realize that a couple might want to know about each other’s finances in the event of a subsequent divorce. Protecting oneself in advance may avoid problems later, and a few tips might help an individual stay prepared.
One suggestion is to have a prenuptial agreement in place before the marriage. This may be especially important when one individual owns a business, has considerable assets or acquires assets during the marriage. Keeping assets separate before and during the marriage as laid out clearly in a prenuptial agreement may prevent problems in the event of the end of the marriage. An individual should also know exactly what is contained in a prenuptial agreement, and it is advisable to seek the advice of an attorney before signing it.
Divorce laws may vary depending on the state, and it is important to know how assets may be divided in a couple’s resident state. Assets that are commingled, such as using a spouse’s credit card that has only one name on it or having rental income from one spouse’s property placed in a joint account, may be construed by the court as joint property and treated as such.
Mutually deciding on financial matters might be a good idea. Taking time to structure documents so the prenuptial agreement is agreeable to both parties is important. As these types of agreements are contracts, they are subject to the normal principles of contract law, and thus it is advisable for each party to have separate counsel.
Making financial decisions before and during a marriage may help protect a spouse in the event of divorce. Even if there is a prenuptial agreement, however, a court may refuse to uphold it if it determines that one party was forced to sign it under duress.