If you’re thinking of signing a prenuptial agreement with your spouse, make sure that you fully disclose all of your assets and all of your debts. That means everything you own, all the money in your savings, anything you have in investments, any business ownership percentages and all the rest. If you have financial policies like a pension or a life insurance plan, you want to disclose these, as well.
Why is it is important to do this? Well, from a practical standpoint, your spouse just needs to know what you own before agreeing to a contract that can have a big impact on their financial future. They deserve to know what they’re agreeing to and what they may be signing away.
From a legal standpoint, it’s also important to disclose everything because the agreement likely will not stand if you don’t. The judge can throw it out, even if everything else was done correctly, and it no longer governs the divorce. This could cause you to lose some of the protections that you carefully built into your plan and that you were really counting on.
Remember, the opposite side of this is also true. You deserve to know all of the same details about your spouse before you sign. If they hid or failed to mention anything, the agreement may not hold up if you do eventually get divorced.
Prenups can get more complicated than many people assume. It is very important to know about all of the legal steps you need to take and what obligations both of you have.