Clauses

Clauses or provisions in a prenup are the specific sections of the agreement that set out the rights, obligations, and responsibilities of the parties involved in the event of a divorce or death. Prenuptial agreements are legal contracts that are entered into by a couple before they are married, and they are intended to establish the financial rights and responsibilities of each spouse during the marriage and in the event of divorce.

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Background Section

Also known as the “Recitals” section of a contract, the background section will require some basic information that will be used on the first page or so of your prenuptial agreement. This section is usually referred to as the “Recitals” or “Preamble” section of a prenup, and is meant to outline basic information about the parties, and their intentions for this agreement. You will be asked questions that include your full name, date of birth, address, your intentions behind entering into this prenuptial agreement, whether or not you are employed and if employed where you are employed, as well as your general health.

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Defining Property

In the Separate Property and Marital / Community Property sections, you will determine which categories of property should remain as just yours, “Separate Property,” and which property should become “Marital Property” or “Community Property” (depending on which state you live in).

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Separate Property Section

Separate Property refers to assets that are owned or acquired by an individual prior to or during the marriage and are not subject to division in the event of a divorce. You will define the categories of property that should remain separate and only yours during your marriage. These assets can include things like real estate, bank accounts, investments, and personal property such as cars, furniture, jewelry, and other valuables, as well as financial gifts, trusts or inheritance.

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Marital Property Section

Marital Property will refer to assets that are subject to division in the event of a divorce, according to the terms of your prenup. This can include assets such as income, real estate, bank accounts, and investments that are acquired or increased in value during the marriage if you do not choose to keep them separate.

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Spousal Support

In this section, you and your spouse will decide whether either of you will be obligated to pay the other financial support in the event of a divorce. Please note, this does not have to do with child support, because child support cannot be addressed in a prenuptial agreement. A Prenuptial Agreement allows you and your future spouse to decide whether you would like state law to determine if support is awarded after a divorce, or if you and your future spouse would like to forfeit your rights to support in the future.

“Support” aka “Spousal Support” aka “Alimony” aka “Spousal Maintenance” is defined differently by each state, but is always a payment from one spouse to the other for a fixed period of time.

Alimony is generally awarded in cases where one party is financially dependent on the other. For example, alimony may be award if spouses have highly different incomes or if one spouse has or plans to take time off from work to raise children.