Paid Content | Kim Baer joins us today to talk about why some people may benefit or need a prenuptial agreement. A prenuptial agreement is a written agreement between two people who are getting married. List all of your assets and debts. Sets forth how you are going to handle the division of assets and debts if you divorce. It needs to be signed within 6 weeks before marriage and does not limit alimony or child support.
Why do people need a prenuptial agreement? In Iowa when people get divorced the Court uses and "equitable division" standard. The Court determines a “fair” way to divide the property and assets.
It used to be pretty standard that property a person owned prior to the marriage or inheritance were treated as separate property--not a marital asset.
But what we have seen in the last 10-15 years is that the Court are telling us that is not a hard rule. Instead the Court will consider the property was yours before you married or that you inherited it as a factor but that does not mean it’s absolutely yours if you divorced. However, it depends on what the court thinks is fair. The same thing is true with a business you owned before you got married. If your spouse helps with the books or works in the shop then it might be treated as marital property.
How do you protect yourself? Draw up a Prenuptial Agreement. Can be a very simple document. it's not very expensive. But if you think you need a prenuptial agreement you want to call your attorney before you get married. Drawing something up afterwards is not binding.