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How to negotiate a prenuptial agreement

| Dec 24, 2019 | Family Law |

There may be good reasons for a Wisconsin couple to create a prenuptial agreement. It can protect both of them financially in case of a divorce, but it is important that they both participate in its creation and that it is fair to both of them.

One woman was given a cohabitation agreement by her boyfriend before moving into his home. He had purchased the home with help from his mother, and he and his girlfriend had agreed that she would pay him a reduced amount in rent. However, the agreement stated that if they got married, she would not be entitled to any financial compensation linked to the home no matter how much money she put into it. In addition, the document said that neither person would owe alimony.

A better approach would have been for the boyfriend to start by talking to her about the document and what should go in it. However, in a situation like this one, the couple can still sit down and discuss their financial concerns and make changes to the first draft of the document. For example, the woman could gain a certain amount of equity in the home each year, or a sunset clause could be inserted that invalidates the prenup after a certain time.

A prenup is not necessarily a guarantee, and it could be challenged during a divorce if one person was coerced into signing it. The prenup could be declared invalid if it is not prepared correctly. If this happens or if there is no prenup, the couple will either have to reach an agreement on property division through negotiation or they will have to go to court.