Prenuptial agreements are an effective and cost-effective means for couples in Tampa, Florida, looking to protect their assets and get financial clarity before marriage. Discussing financial matters might not feel romantic, but it is a significant step toward safeguarding your future. At Hunter Law, we understand the complexities of Florida prenuptial agreement law and can help you through the process. This article discusses important concepts related to prenuptial agreements, from their benefits to the steps involved in creating one.
Benefits of a Prenuptial Agreement in Florida
A prenuptial agreement allows your divorce attorney to protect you in more ways than a standard division of assets in case of a separation. It offers much-needed peace of mind and sets clear financial expectations within a marriage. Here are some key benefits provided by securing a prenuptial agreement in Florida.
Financial Security
A prenuptial agreement outlines how assets and debts will be managed and divided in the event of a divorce. Without one, state laws determine all aspects of your separation or divorce agreement. Ultimately, that might not line up with your personal preferences. When a prenup is in place, it ensures your financial interests are protected. You can proactively avoid potential disputes during what is an already emotionally taxing process.
Protecting Premarital Assets
If you or your partner own any significant assets before entering into a marriage, a prenuptial agreement ensures those assets are protected. Whether it is real estate, investments, or a family-owned business, this legal document clarifies who retains ownership, preventing complicated division battles later.
Debt Protection
In addition to the assets, prenuptial agreements can address existing debt. If your spouse-to-be has student loans, credit card debt, or other liabilities, an antenuptial agreement in Florida clearly defines who will be responsible for them if the marriage ends. It can help significantly in ensuring you avoid ending up with an unfair burden of debt that was never yours in the first place.
When Should You Consider a Prenuptial Agreement?
Most people tend to associate prenuptial agreements with extremely wealthy individuals. However, they are now being used by couples from all financial backgrounds more regularly. When does it make sense to consider a prenuptial agreement?
Business Ownership in Tampa, FL
If you or your partner own a business, a prenuptial agreement lawyer from Hunter Law will develop a plan to ensure the company remains separate property. This is important if you want to avoid a potential future division that could impact business operations or ownership rights.
Protecting an Inheritance for Children
If either spouse has children from a previous relationship, a prenup helps protect the children’s inheritance rights. You can outline what portion of your assets goes to your children to secure their financial future. Remember, this does not apply to child support or parenting plans.
Retirement and Financial Planning
Prenuptial agreements may also cover retirement plans, pensions, and other long-term financial considerations. Defining these expectations in advance establishes that you are both on the same page regarding how to divide your assets upon retirement or if the marriage ends in divorce.
Steps To Create a Prenuptial Agreement
Creating a prenuptial agreement in Florida involves several important steps.
- Initial Discussion and Agreement Outline: Begin by having an open and candid discussion with your partner about your finances, assets, debts, and future plans. You must both be on the same page before any legal work begins.
- Timing. If the date of the wedding is known, it is important that the prenuptial agreement be completed well ahead of the actual wedding, to avoid concerns that either party was rushed or coerced into signing the agreement against their will.
- Consult With a Lawyer: Florida prenuptial agreement law requires you and your partner to consult with your own lawyers, as you cannot use the same one. It is the best way to guarantee that the prenuptial agreement is fair and that everyone’s interests are protected. A prenuptial agreement lawyer can guide you through the legal specifics, including applicable Florida statutes and relevant case law to avoid missteps that could lead to the agreement being invalidated in the future.
- Disclosures. It is important for both parties to fully and completely disclose to each other their current financial circumstances, especially as to assets and debts. Failing to provide such disclosure could provide a means to set aside a prenuptial agreement in the future.
- Draft and Review the Agreement: Next, the prenuptial agreement is drafted based on the discussions and legal advice you received. Once drafted, both of your lawyers will have an opportunity to review the document. We will confirm that it meets all legal requirements and accurately reflects your intentions.
- Sign and Notarize: Once you and your partner agree to the terms, you will both sign the prenuptial agreement, in the presence of at least two witnesses and a notary public. Ideally, the parties will sign two copies, so each party has a “wet-ink” original of the agreement. At this point, the document is considered legally binding under Florida law. The fully signed, witnessed, and notarized prenuptial agreement is an important document and should be safeguarded accordingly.
What Prenups Cannot Cover
While a prenuptial agreement can address many financial matters, some financial issues cannot be included. These include child support, parenting plan, temporary alimony, and attorneys fees..
Child Support and Custody
In Florida, child support and custody arrangements are determined based on the best interests of the child at the time of the parents’ separation or divorce; they cannot be predetermined in a prenuptial agreement.
Parental Responsibility and Parenting Plans
In Florida, parental responsibility is set out in a divorce parenting plan, either by agreement or court order. The court evaluates both parents’ ability to provide for their child’s needs at the time of the hearing, and then the court makes a decision that serves the child’s best interests. Your and your spouse’s circumstances at the time of separation or divorce determine these decisions. Therefore, you cannot include them in a prenuptial agreement. The court’s job is to protect your child’s rights by ensuring parental responsibility and time-sharing are allocated equitably during a divorce.
You Cannot Predetermine Child Support
For similar reasons, you cannot include predetermined child support in a prenuptial agreement. The court calculates any child support requirements based on your and your partner’s financial situations and the child’s needs at the time of the separation. Florida law separates child support from the division of assets or spousal support agreements. The reason? Child support is the child’s right, not a parent’s, and the court is responsible for safeguarding this right.
You Cannot Predetermine Temporary Alimony or Attorneys Fees
Just as you cannot predetermine child support, the public policy of the State of Florida does not allow you to include terms in a prenuptial agreement for either party to forego temporary support, such as temporary alimony or temporary attorneys fees. This is to ensure that both parties are on a ‘level playing field’ at the time of a divorce and that neither party is left impoverished and unable to ‘make their case’ to the court at the same level as the ‘moneyed’ party.
Protect Your Future With a Prenuptial Agreement
A well-crafted prenuptial agreement protects your financial interests and promotes transparency and peace of mind in your marriage. You can focus on building a future together by addressing important financial matters upfront. But, if a prenuptial agreement is not carefully crafted to meet statutory and public policy requirements of the State of Florida, it could be set aside in a future divorce. If you are considering a prenuptial agreement, contact Hunter Law. We are ready to help you in Tampa, FL, and provide guidance tailored to your needs.