What is a Prenup?

A prenup, also known as a prenuptial agreement or ante-nuptial agreement, is a contract entered into by a couple prior to marriage that divides the couple's assets in case of divorce. Many people associate prenups with those who are very wealthy or famous, but anyone who wishes to protect his or her separate or pre-marital property in the event of divorce should consider entering into a prenuptial agreement prior to marriage.

At Meriwether & Tharp, we believe there's a better way. We charge flat fees for prenups. You pay one upfront cost. No more surprise monthly bills or unknown costs. You have 2 different flat fee options that vary in price and attorney experience level. You're dealing with enough as it is, don't settle for an expensive prenup with an unknown cost.

To ensure the enforceability of your pre-marital agreement in the event of divorce, keep the following in mind:

• It is best to talk about and agree to the terms of your prenuptial agreement with your future spouse at least 6-12 months before your wedding. Otherwise, a court may refuse to enforce the agreement if it was entered into too close to the wedding date. Courts do not favor prenuptial agreements entered into on the eve of weddings because the threat of cancelling or postponing the wedding may cause some to sign an agreement they would not otherwise enter into.
• Although prenuptial agreements are enforceable in Georgia, what may be acceptable in Georgia may not be acceptable or enforceable in another state.
• Each party should be represented by his or her own attorney. In the event that one party does not retain their own separate counsel, the attorney drafting the prenuptial agreement can only represent and give legal advice to one party. The unrepresented party will have to sign an acknowledgement stating that he or she refused representation and that she is entering the agreement willingly. Not only must each party be represented by separate attorneys, but also both attorneys must be retained and compensated separately.
• An itemized statement or spreadsheet of the assets and debts encompassed by the pre-marital agreement should be attached to the agreement itself. This schedule of assets and debts should include the financial information of both parties. In fact, it may be best to attach separate asset and debt worksheets for each party individually. This is an important step, because there must be a full disclosure of each party's assets for an ante-nuptial agreement to be valid.
• Ensure that all values representing the balance of pre-marital assets like retirement accounts, investment portfolios, liquid bank accounts or even real estate are up to date and accurate. It is a good idea to obtain statements or have appraisals done just prior to the wedding date to set the premarital value and attach same to the agreement.

If you have substantial liquid assets, consider keeping what you already have prior to the marriage in a separate account with only your name on it. This will make these assets easier to identify in the event of divorce. Additionally, keeping these assets separate will ensure no co-mingling of assets takes place. Read more about commingled property and the distinction between separate and marital property in our articles on these topics.