You just got engaged and you are planning a party for your friends and family. Your fiance walks up to you and says that they want a prenup. The first emotion you feel is disappointment. Then you are upset thinking that your fiance doesn't love you enough or doubts your love for them. In reality, it isn't as bad as you think! Your fiance doesn't have an ill intention in mind, so take some time to think from their point of view. 

Prenups are becoming more and more common 

A prenup acts as a practical, protective tool for handling financial complexities smartly. Whether your partner is set to inherit a huge sum of money or has kids from previous relationships, there could be many reasons to get a prenup. Other reasons for getting a prenup include protecting real estate assets from before the marriage, debt protection, and clear separation of assets if the marriage breaks down. 

Does a prenup ever expire? 

Prenups are agreements that will last as long as you want to. Many couples add a ‘sunset clause', which entails that the prenup becomes null and void after the birth of a child or 10-15 years into the marriage. It is entirely a choice that you and your fiance have to make. 

What can be included in a prenup?

1. Property Division

It's not just about who gets the house or the car, but also about investments, savings, and even items of sentimental value. You can specify certain properties as separate (owned by one partner pre-marriage) or marital (acquired during the marriage), so there's a fair and predetermined division that reflects each person's contributions and needs.

2. Debt Allocation

If you and your partner have debt from before marriage, like student loans or credit card debt, you may include it in the prenup. You can mention who is responsible for them and how joint assets will be handled to pay off debt accumulated during marriage. Debts can be as significant as assets when it comes to marriage. 

3. Spousal Support

Often a sensitive topic, spousal support clause sets out the terms: who might pay, how much, and for how long. It's not about predicting a marriage's end but about providing a safety net and fair support if the partnership dissolves. This can be especially important if one partner sacrifices their career for marriage or kids.

4. Finances During Marriage

This section goes into detail about pays for what, how you'll handle joint accounts, and how you'll approach investments and savings. With this clause, you prevent misunderstandings and ensure both partners contribute fairly and according to their means.

5. Inheritance and Estate Plans

You can also add a section on how your assets will be distributed in the event of death. It's particularly important for those with children from previous relationships or major personal assets. You can objectively mention what goes to the children, the current spouse, and other family members.

6. Family Property or Business Protection

 With a prenup, you make sure these assets remain in the family, protecting them from being divided or lost in the event of a divorce. While it doesn't have much financial value, it carries big sentimental and historical significance.

Sterling Law provides top-tier prenuptial agreement drafting services in both Brampton and Mississauga. With a team of seasoned lawyers, they are well-equipped to handle your legal needs. Please reach out for a free consultation (up to 30 minutes only).