You’ve probably heard of a prenup. Today, many married couples choose to create a prenuptial agreement prior to their marriage. This is a legal contract that allows couples to establish how their property and assets will be handled during the marriage. Prenups also often determine how marital assets will be divided in the event of divorce, and they can establish other matters such as alimony and child support payments. When settling on financial agreements, it’s important that both spouses include full financial disclosure. To learn more about this, read on or reach out to a Suffolk County Prenuptial Agreement Attorney today!
WHAT IS FINANCIAL DISCLOSURE IN A PRENUPTIAL AGREEMENT?
To establish a viable prenuptial agreement, it’s necessary to provide full financial disclosure. Essentially, this is when both spouses identify their income, assets, and debts for their prenup. Spouses must indicate their personal property to ensure that their assets are protected in the event of a divorce. Normally, spouses need to attach a financial schedule – a document that outlines a person’s income, assets, debt, and protective inheritance – to the end of their prenup agreement. In New York, it’s legally required for both spouses to provide financial disclosure when creating and signing a prenuptial agreement.
WHY IS FULL DISCLOSURE IMPORTANT?
The failure to disclose all of your finances could be a detrimental decision down the line. Without fully disclosing your financial status, the prenuptial agreement might not be accurate and consequently could be declared invalid in court. The purpose of a prenup is to protect your assets in case of divorce, which is why it is incredibly important to include full disclosure when drafting the legal document. Without a valid prenup, the court might have to decide how your assets are divided in a divorce.
Full disclosure is also important because it helps both parties understand the terms of their agreement. It allows both parties to realize the full impact of their decision-making when settling on an agreement. Omitting financial information from a legal agreement can be considered a fraudulent act in some cases. Overall, it’s best to simply disclose all of your assets and debt during this process.
Are you in the process of creating a prenuptial agreement with your future spouse? Are you seeking an experienced family law attorney that can help you in the legal proceedings? Look no further because the Law Offices of Susan A. Kassel, PC is here for you! Contact our effective team today for an initial consultation.