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Article Title:
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5 Realities About Prenuptial Agreements

Article Description:
====================

Recently many articles have been appearing on the internet
extolling the virtues of entering into a prenuptial or premarital
agreement prior to your marriage. I offer the following
reflections from my practice of law and work as a mediator to
strongly counter the idea that prenuptial agreements have no
'cost' and provide only benefit to a marrying couple. Both
people entering into marriages should seriously consider what
these realities are prior to engaging in the idea that a
prenuptial agreement will be good for you and your marriage.


Additional Article Information:
===============================

1191 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2008-07-03 12:00:00

Written By:     Laurie Israel, Esq.
Copyright:      2008
Contact Email:  mailto:[EMAIL PROTECTED]



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5 Realities About Prenuptial Agreements
Copyright (c) 2008 Laurie Israel, Esq.
The Law Offices of Laurie Israel
http://www.laurieisrael.com



Recently many articles have been appearing on the internet
extolling the virtues of entering into a prenuptial or premarital
agreement prior to your marriage. I offer the following
reflections from my practice of law and work as a mediator to
strongly counter the idea that prenuptial agreements have no
“cost” and provide only benefit to a marrying couple. Both people
entering into marriages should seriously consider what these
realities are prior to engaging in the idea that a prenuptial
agreement will be good for you and your marriage.

Reality 1: Negotiating a prenuptial agreement may irrevocably
corrode your marriage and has the potential to make divorce much
more likely.

The future spouse who pushes for a prenuptial agreement
demonstrates a lack of faith in the other and a lack of
commitment to the marriage. That prospective spouse also presumes
a lack of fairness from the other in case of divorce.

There is usually an “initiator” spouse, and a “compliant” spouse.
The negotiations will always be remembered as callous by the
“compliant” spouse. The dynamics of the negotiations set up a bad
pattern for the marriage.

Negotiating a prenuptial agreement is not romantic and can
destroy a portion of the couples’ love forever. It is a harsh
business negotiation, made harsher by the lawyers who must be
involved, because the agreement is generally not enforceable
without involvement of separate legal counsel.

Marriage is a mixture of a complicated set of laws, customs,
expectations, and culturally-based understandings. A premarital
agreement will upset this balance in unexpected ways and is bound
to have unintended consequences.

Most lawyers representing parties in prenuptial agreements have
no sensitivity to the harm they cause the couple and simply act
(or pretend) as if it is purely a business deal. Marriage is not
a business.

Often the initiating party (or their lawyer) says, “You can just
put the premarital agreement in a drawer and forget about it.”
That is not true. The premarital agreement cannot be forgotten
and is presumptively legally binding as soon as it is pulled out
of the drawer.

The initiator of a prenuptial agreement fails to trust and
appreciate the balance of good common sense and equity embodied
in state divorce laws. These laws were carefully developed during
a long period of time and are designed to provide for fair
solutions to all aspects of divorce, including the financial
elements.

Many things, unforeseeable at the time the prenuptial agreement
is signed, will likely happen during the course of a marriage.
Applying these state laws at the time of divorce is more sensible
than anything the parties can think of years before the divorce
occurs.

If a “better” result than would be obtained by state divorce laws
accrues to the party who initiated the premarital agreement, that
“better” result is by definition unfair and a result of
overreaching.

Reality 2: The two parties negotiating a Prenuptial Agreement do
not generally have equal bargaining power, so the Agreement tends
to be coercive and lacking in fair and equivalent consideration.

I have seen many cases where parties negotiate prenuptial
agreements very close to the wedding and after the invitations
have been sent out. This is not conducive for arm’s-length
bargaining about a financial contract that may affect the next 50
years of your life.

Prenuptial agreements are generally one-sided, but are “dressed
up” to pretend that there is consideration for the contract on
both sides.

The financial contract at the heart of the Prenuptial Agreement
involves the largest financial settlement you will ever make in
your life, because it includes all property - past, present, and
future; inherited, earned, and unearned - , of each of the
spouses.

Even mediators can be insensitive to the power imbalance in the
parties when assisting clients in negotiating a prenuptial
agreement. Mediators should be very aware that the agreement
proposed by “both parties” may be really the thoughts of only one
and that the other party feels coerced, although does not admit
it. All motivations and feelings should be exposed and discussed
in the mediation prior to proceeding.

Reality 3: Prenuptial agreements are generally not appropriate
for people entering into first marriages, whether or not there is
a disparity in income and assets.

Marriage is an exciting joint venture. If some of the aspects of
the joint venture are removed by the premarital agreement, the
marriage will become weaker. An important part of the joint
venture of marriage is the financial partnership. A spouse may
correctly feel that some of this aspect of the marriage has been
taken away if a premarital agreement is entered into decreasing
the spouse’s rights.

State divorce laws can handle the issues of disparity of income
and disparity of premarital assets if and when the spouses get
divorced. Avoiding court at the cost of an agreement that may
make it more likely that there will be marriage failure may not
be a sensible trade-off.

However, prenuptial agreements can be highly useful for people
entering into second marriages who have children from the first
marriage. An agreement can balance a spouse’s loyalty to the new
spouse and with the spouse’s concern and loyalty to the children
of the first marriage.

Reality 4: A Prenuptial Agreement often damages the relationship
between the two families-of-origin.

A party (or the party’s parents) may want a financial agreement
prior to the marriage due to the existence of family wealth. The
premarital agreement generally isolates all family property as
not part of the marriage, forever. Result: the future spouse’s
family feels humiliated and disrespected, and never forgets the
rebuff. This is not good for the parties’ marriage, as it will
result in family-of-origin conflict that will be present during
the entire marriage and remembered until death.

One common fact pattern that I see often is this: the future
spouse does not want to have a prenuptial agreement, but his
parents insist. The prenuptial agreement is made. The wife feels
her husband was unable to stand up to his parents, and loses
respect for him.

The control of the marriage by one party’s family of origin
disturbs the delicate balance of a marriage and makes it more
likely to fail.

Reality 5: The terms of a Prenuptial Agreement are often quite
unfair at the time of divorce, even though they are generally
enforced by a Court.

Courts routinely enforce premarital agreements that give a spouse
a fraction of what the spouse would “deserve” under state law.
This proves that the deal made in the prenuptial agreement years
earlier were unfair to that spouse.

Parties struggle in courts over prenuptial agreements; prenuptial
agreements per se do not eliminate court battles.

Divorce laws are fair. That’s why they were developed. Trust in
them (and in your good will and sense of fairness to each other)
to do the right thing at the time of divorce. Do not rely on a
set of financial agreements made years earlier prior to the
marriage that may be totally out of sync with the real facts at
the time of divorce. Trust that by foregoing the premarital
agreement you have made your marriage stronger and more likely to
succeed. 




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Laurie Israel is a lawyer/mediator who helps clients resolve 
their disputes with a high level of dignity, integrity and 
creativity. Laurie works in the areas of collaborative 
divorce, divorce mediation, divorce negotiation, and 
prenuptial agreements. She also helps people who wish 
to stay married through providing marital mediation 
(“Mediation to Stay Married”) and negotiation of 
postnuptial agreements. You can find out more about 
her work and read her articles on her websites:  
http://www.laurieisrael.com and http://www.mediationtostaymarried.com


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