A prenuptial agreement, or prenup, is among the most effective tools that couples can use to outline their prospective division of assets and liabilities in the event of divorce or death. It comes in handy for protecting certain assets and financial interests that individuals bring into a marriage.
However, a prenup is not without limitations. There are certain aspects and circumstances where a prenuptial agreement may not hold up in court or fully achieve its intended purpose.
Child welfare
While the prenup can specify financial matters like child support, it cannot dictate custody arrangements or other aspects of child welfare. Courts always prioritize the best interests of the child, and any provisions in a prenup that conflict with those interests may be disregarded.
Unconscionability
A prenuptial agreement must be fair and reasonable at the time it is signed. If one party can prove that they signed the agreement under duress, coercion or without full knowledge of its implications, a court may deem it unconscionable and invalidate some or all of its provisions.
Lack of full disclosure
For a prenup to be considered valid, it must be entered voluntarily by both parties. This includes full disclosure of each party’s assets, liabilities and financial situation. If one party fails to fully disclose their financial information or if there is evidence of fraud or deceit in the disclosure process, the prenup may be invalidated.
If you’re concerned about the limitations of your prenup or its enforceability, addressing these concerns with legal counsel sooner rather than later can help you understand your rights and options.