A proper prenup can be a staple in securing your assets in the case of a divorce. For business owners, this is especially important.
However, there are certain circumstances under which a prenuptial agreement may not hold up. Some of the most common reasons may be interesting to discover.
During the divorce process, the courts seek to ensure that both parties have a fair chance to rebuild their separate lives on similar levels. For this reason, many common reasons for a prenup to be invalid boil down to the terms not being fair to both sides or leaving one party at a strong disadvantage at the end of the marriage. Not only must the prenup pass this test after its creation, but it must also pass the “second look,” where the courts examine it during the actual divorce process.
Lack of representation
By law, both parties must willingly agree to a prenuptial agreement in order for it to stand. Therefore, both parties must be able to understand the terms of the agreement. For this reason, some courts may require that parties have separate representation when creating the agreement. Even if it is not required in a certain area, incorporating representation for both parties can help to alleviate possible issues in the future.
Each couple is different, and therefore they value different things. As such, some parties may include lifestyle clauses within their agreement. Even if these clauses are allowed to stand during the creation of the agreement, the courts may find it too hard to prove and therefore may not uphold them. Such clauses may not make the entire agreement invalid, but they could invalidate certain claims.
Understanding the ways in which a prenup may become invalid can help you in strengthening your own agreement. Take some time to consider what changes, if any, could benefit your prenup or postnuptial agreement.