For many couples, having a legal contract that dictates how assets are divided and transferred in the event of divorce gives them peace of mind. No one wants to believe their marriage will ever end. However, sometimes marriages fail and result in divorce. To avoid the intricate litigation process during a divorce, couples may choose to create a prenuptial agreement before they tie the knot. A prenuptial agreement is a written contract that allows couples to dictate how their assets will be divided in the event of a divorce. There is a common misconception that only individuals with a high level of wealth need to obtain this kind of legal agreement. However, anyone with assets can benefit from this type of agreement. It is important for individuals seeking to create a prenuptial agreement to understand all the facets that will apply to the terms of their agreement. When creating a prenuptial agreement, both parties are required to financially disclose all of their assets. If you are interested in drafting a prenuptial agreement, please read on and contact a knowledgeable Rockland County Prenuptial Agreement Attorney. Our firm is committed to helping our clients understand the importance of financial disclosure.
Why is financial disclosure critical when creating a prenuptial agreement?
To make informed decisions about the terms of their contractual agreement, both parties must disclose all pertinent financial information when creating a prenuptial agreement. The consequences of failing to disclose are significant. When one party fails to disclose all of their assets it could cause the agreement to be invalidated. If a prenuptial agreement is invalidated, the whole purpose of the agreement will be defeated. A prenuptial agreement is created to avoid a long and complex litigation process in the event of a divorce. In a prenuptial agreement, the parties have already mutually agreed upon the way their assets will be divided and distributed in the event of a divorce. However, if the prenuptial agreement is invalidated, they will have to undergo a long process of litigation to sort out their affairs. Additionally, the same standard applies to debt. If a party does not disclose all of their financial debts, it could be grounds for invalidation. Ultimately, prenuptial agreements require both parties to disclose their finances so that every asset can be accounted for. It is imperative for both parties to financially disclose all of their assets in a prenuptial agreement to protect their interests.
If you want to ensure your assets are protected in the event of a divorce, please don’t hesitate to contact one of our determined and trusted attorneys who can help you create a prenuptial agreement. Our firm is dedicated to helping our clients understand all pertinent facets of a prenuptial agreement including their rights when it comes to financially disclosing their assets.