With nearly 50% of marriages ending in divorce in the U.S, having a prenuptial agreement – also known as prenup – is definitely a great idea. However, signing a prenuptial agreement does not automatically guarantee that your property will be protected should your marriage end in divorce. Reason? Some prenups can be invalid.
If you are planning to sign a prenup agreement, it is important that you know some of the pitfalls that can render it invalid. Here are common grounds upon which your prenup agreement may be invalidated.
Failure to disclose all the assets
In Kentucky, your prenuptial agreement can be nullified by the court if you fail to disclose all your assets or income while signing the prenup agreement. Thus, it is crucial that both parties are as transparent as possible when drafting the prenup agreement. It works best when you understand the state’s property division laws while creating this document.
One of the biggest mistakes you can make when creating your prenup agreement is failing to execute it properly. Kentucky courts recognize prenups that are written and signed before the marriage. Thus, an oral prenuptial agreement or one that was prepared after the marriage may be deemed invalid by the court. Also, a prenuptial agreement must be signed in the presence of a witness and a notary if the document contains real estate assets.
Prenup signed under coercion or fraud
If a prenuptial agreement was prepared under fraudulent circumstances, signed under duress or based on fraud, the entire document will be deemed invalid. Also, if one party was intoxicated at the time of signing the document, they may dispute and successfully have the document invalidated on grounds of lack of capacity.
Prenup contains illegal provisions
A prenup agreement cannot contain provisions that violate existing state or federal laws. If this happens, the document will be invalidated.
A prenuptial agreement is an invaluable tool that can help an engaged couple set their expectations while protecting their separate assets. However, it is important that it is void of errors that can make it invalid.