Why is financial disclosure required for a prenuptial agreement?
Before a couple officially ties the knot, they may consider establishing a legal contract known as a prenuptial agreement to protect their assets in the event of a divorce. In the event of a divorce, a prenuptial agreement allows couples to specify how their assets and property will be divided and distributed. Additionally, it can help couples avoid the intricate and long process of litigation. An important aspect of a prenuptial agreement is financial disclosure. Both parties are legally required to disclose all of their assets to make fair decisions about the terms that will apply to the prenuptial agreement. If you are interested in creating a prenuptial agreement, please read on and contact a trusted Nassau County Prenuptial Agreement Attorney who can help you understand the importance of full financial disclosure.
What to know about financial disclosure in a prenuptial agreement?
Full financial disclosure is imperative when it comes to prenuptial agreements. When creating the terms of their prenuptial agreement, both parties must present all of their assets. This will ensure that both parties are fully aware of all pertinent factors when making significant decisions about the terms of their prenuptial agreement. Both parties must have full knowledge of all assets as it can affect the decisions they make regarding their agreement. In some cases, one party may choose not to disclose an asset or try to hide an asset, however, whatever the case may be this will only come to haunt them later on. Regardless of each party’s level of wealth, prenuptial agreements are beneficial as they protect both parties’ hard-earned assets in the event of a divorce. Ultimately, if one party does not disclose all of their assets, it could cause the prenuptial agreement to be invalid later on.
What happens when you fail to disclose?
As mentioned above, it is critical for both parties to fully disclose all of their assets in a prenuptial agreement. Fully disclosing also requires both parties to disclose any debts they have. If one party fails to disclose, they will face negative consequences. A prenuptial agreement may be considered invalid if one party can prove that the other party did not disclose all of their assets. Legally it is grounds to have the prenuptial agreement invalidated. The same rule applies to any debt that was not disclosed in a prenuptial agreement. If a prenuptial agreement is invalidated, this could lead to a time-consuming and expensive litigation process. The purpose of a prenuptial agreement is to avoid litigation as all the terms have already been mutually agreed upon. However, if assets are missing from the prenuptial agreement, it could cause the prenuptial agreement to be invalidated.
If you have questions about full financial disclosure or are interested in creating a prenuptial agreement, don’t hesitate to reach out to one of our knowledgeable and dedicated attorneys. Our firm is committed to helping our clients understand the benefits of a prenuptial agreement as well as the consequences of failing to fully disclose assets. Allow our firm to help you today.
