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Getting a prenup? Know the contract's limits.

A couple of weeks ago, we wrote a post about marital contracts. More specifically, we talked about prenuptial agreements. Prenups are valuable contracts that can help many couples address some critical issues in marriage and divorce. Financial considerations can be made, as well as provisions that help protect your family business and your estate plan.

However, the prenuptial agreement has a couple of stigmas attached to it. First, many consider it to be an anti-love contract that is actually a predictor of divorce. This simply isn't true. Prenups are merely documents that plan for a divorce should one happen. Prenups don't predict divorce. Second, many think that a prenup, once signed, is legally impregnable and that there is no recourse for them if the prenup is unfair.

Again, this isn't true. There are many ways to challenge a prenuptial agreement, and one of the reasons is if the prenup is unfair to one of the spouses. This is called "unconscionability." When a prenup clearly favors one spouse over the other, a judge could determine that the contract is "unconscionable" and either strike down the entire prenup, or just part of the contract.

You can also challenge the prenup if you weren't given enough time to fully consider the contract. For example, if your spouse forced you to sign the document quickly, or if didn't read it or have the time to read and consider it, then you could mount a legal challenge against the prenuptial agreement.

Source: FindLaw, "Top 10 Reasons a Premarital Agreement May be Invalid," Accessed Aug. 4, 2016

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