Λ Σ Υ PRESENTS: LA PLENA NOVEMBER 2006 The Dahkil Chapter of Lambda Sigma Upsilon Inc. presents, “Till Prenupt Do Us Part”: Prenuptial Agreements 1.0 Purpose: L A P L E N A 1.0 Purpose What is a prenuptial agreement? 1.1 History Where does the concept of a premarital contract come from? 1.2 Today How do prenuptial agreements function today? 1.3 How it Works Why should you consider a Prenuptial agreement? 1.4 Pros & Cons Is a prenuptial agreement right for you? 1.5 Conclusion Prenuptial agreements can offer the best legal defense against an expensive divorce, but why else should you consider signing one? If every marriage was a Cinderella story, then every one would live happily every after. In reality about one in three of all first marriages end in divorce, and 50 percent of second and third marriages end in divorce as well. As a safeguard from unfavorable litigation following a divorce, there is a preemptive device designed to help secure an equitable dissolution between former couples if need be; this solution is a prenuptial agreement. Prenuptial agreements are not only rising in popularity, but legal and financial experts consider it to be smart financial planning. Nancy Dunnan, a New York City financial adviser states, “Think of it as a business arrangement or as an insurance policy to help remove some of the emotion that's naturally involved. Marriage is not just an emotional and physical union -- it's also a financial union. A prenuptial and the discussions that go with it can help ensure the financial well-being of the marriage.” What is a Prenuptial Agreement? A prenuptial agreement, commonly abbreviated to prenup or prenupt, is a contract by two people prior to marriage. The content of a prenuptial agreement may vary, but commonly includes provisions for the division of property should the couple di- LAMBDA SIGMA UPSILON LATINO FRATERNITY INC. vorce and any rights to spousal support during or after the dissolution of marriage. 1.1 History: Contrary to popular belief prenuptial agreements have been around for thousands of years. During the 19th century, before the Married Women's Property Act of 1848, the agreements were necessary for women in the United States. Until the act became law, everything a woman owned or inherited was transferred to her husband. If he died or divorced her, she could lose everything. 1.2 Today: Essentially marriage is a legal contract between two people. With regard to your property, the provisions of your marriage contract are governed by the laws of the state in which you live — and these laws determine how assets will be divided in case you divorce — unless you and your spouse decide you want to write your own marriage contract instead. When you write your own marriage contract, it’s called a prenuptial agreement. 1.3 How it works: Prenuptial agreements accomplish three basic things: 1. They keep property separate. 2. They keep debt separate. www.lsu79.org Λ Σ Υ PRESENTS: LA PLENA 3. They allow couples to set terms for spousal support. It is important to realize that a prenupt only applies to property. A prenupt can also allow for the waiver of spousal support. Some may provide for specific spousal payment agreements (for instance, that the wife will receive $2000 a month), but due to inflation and other factors specific spousal payment agreements are difficult to uphold in court and are actually prohibited in most states. The process for creating a prenuptial agreement is simple. Couples decide what works for them and what stays with whom in the event of a failed marriage. The deal between the couple will generally be respected by the law, but remember, this is a legal contract to which American contract law applies, and a divorce court can and will overturn a private agreement if it finds that: 1.The agreement is likely to promote divorce — the contract gives one or both parties a monetary incentive to leave. 2.The agreement was written with the intention of divorce. 3.The agreement was created unfairly — one of the parties was coerced into signing the contract. 1.4 Pros and Cons Pros of Prenuptial Agreements: NOVEMBER 2006 • Having a prenuptial marriage agreement does not mean that a couple is anticipating divorce. • Financial matters need to be faced. • Prenuptial agreements can preserve family ties and inheritance. • If your future spouse won't sign a prenuptial marriage agreement, it may be best to discover this before the wedding. Cons of ments: This Newsletter was designed, written, and edited by: KEMET ΛΣΥ Present’s Prenuptial Agree- • Prenuptial marriage agreements can be set aside for failure to disclose all assets, or if there is evidence of fraud, duress, unfairness, or lack of representation at the time of signing the agreement. • They are unromantic. • Prenups can give the appearance that there is a lack of trust between the partners. • A prenuptial agreement could create resentment between spouses. 1.5 Conclusion: A prenuptial agreement should not be adversarial. It should not be, 'What can I get if things go wrong?' rather another method to build trust because you're talking right up front about what's important to you. November 10th 2006 ________________________________________________________________________________________________________________ This newsletter is intended to progress awareness, as well as to augment questions and raise concerns. As always, Lambda Sigma Upsilon Latino Fraternity Inc. encourages its readers to carry out their own research and draw their own conclusions. ____________________________________________________________________________________________ References: http://en.wikipedia.org/wiki/Prenup http://www.divorcereform.org/rates.html http://money.cnn.com/2004/03/19/pf/prenups/ http://www.biblenews1.com/marriage/marriags.htm http://www.nolo.com/article.cfm/ObjectID/1AA1A917-D838-464B-94552B37E898CED2/catID/BD0FF030-3064-46 80-B419B66BA296767C/118/304/247/ART/ _________________________________________________________________________________________________ LAMBDA SIGMA UPSILON LATINO FRATERNITY INC. www.lsu79.org