If you are likely to tie the knot sometime soon, a prenuptial agreement is something you should consider looking into. There are a lot of myths and misconceptions surrounding the prenup including things like it is only something for the rich and the famous, that it is for couples who do not trust each other, etc. Here are some basic FAQs about prenuptial agreements that should help you create a clear understanding of what they are, when to consider them, how they are helpful and more:
- What is a Prenuptial Agreement?
A prenuptial agreement is a contract that a couple enters into before getting married that allows them to determine in advance how assets and liabilities, financial and otherwise, will be divided between the two parties should the marriage end in a divorce.
- Who should consider a prenup?
There are certain cases where having a prenup is more helpful than others. For example, when people from two different countries are getting married, a prenup could help determine where the divorce proceedings would take place, provided there is a choice in the matter. Similarly, if a couple where one or both individuals have a high net worth, having a prenup is ideal. However, that does not mean that people not meeting these conditions will not find a prenup helpful. If your marriage were to dissolve, a prenup can provide a guideline for proceedings during one of the most difficult times of your life. Just for that reason alone, a prenup is something that every couple who is thinking of getting married should consider.
- Doesn’t a prenup mean that we don’t love each other enough to make the marriage work?
No, a prenup does not mean that you do not love or trust each other. A prenup makes sure that the division of assets and liabilities, whether they were brought into the marriage by the parties, or whether they were created during the marriage, are shared fairly and that is what a loving couple would want for each other.
- Does a prenup mean that I get no alimony/child support?
No, a prenup does not necessarily mean that. You and your partner are free to set whatever terms you would like in the prenup, including provision of alimony. Additionally, a prenup can be modified as life circumstances change like for example, if one partner gave up their career to raise their children. In such a case, a modification to the prenup could include alimony as well as arrangements for the children, financial or otherwise.
- Are prenups enforceable?
Prenups are not legally binding in the Cayman Islands. However, if the following conditions are met, the court may choose to uphold it:
- Both parties have received independent legal advice.
- Both parties have had sufficient time to consider the terms before signing the agreement, and,
- There is no coercion from either party for the other party to enter the agreement.