10 Facts About Prenups in Colorado
Many couples choose to invest in a prenuptial agreement, which is legally known as a premarital agreement in the state of Colorado. However, before you prepare or sign a premarital agreement, it’s essential to understand the legal requirements and limitations.
While DIY forms exist online, we recommend working with an experienced family law attorney. If you ever need to rely on the prenup, you want to know that the document is legally enforceable.
10 Things to Know About Premarital Agreements
- Premarital agreements are legal contracts that couples can enter before entering into a marriage. The agreement outlines the rights and responsibilities of both parties if the marriage ends in divorce or death.
- Both parties must voluntarily enter a premarital agreement.
- Premarital agreements often are intended to protect one or both spouse’s pre-existing assets and separate property. Assets can include investments, properties, businesses, inheritances, and other assets. The agreement can also specify how debt and liabilities would be allocated in the event of a divorce.
- In Colorado, couples cannot use premarital agreements to limit child support obligations, parenting time, or decision making for a child.
- The premarital agreement must be in writing and signed by both parties to be legally binding. Oral agreements are not valid.
- Both spouses should fully disclose all assets and liabilities prior to executing the agreement. The document could be deemed invalid during divorce proceedings if either spouse failed to disclose pertinent information.
- Premarital agreements are irrevocable unless both spouses agree to revoke it. If either spouse wishes to make changes, they must do so through a postmarital agreement (simply called a “marital agreement”). A couple who does not start the marriage with a premarital agreement can later enter a marital agreement. For example, if one party inherits money or starts a business, a marital agreement can clarify expectations and protect the interests of each party.
- Marital agreements offer many benefits, including protecting assets, honoring agreements from previous marriages, avoiding expensive litigation in the divorce process, protecting business assets, and providing peace of mind.
- If either party wishes to challenge the validity of a premarital agreement, it must be done in court. Grounds for challenging the agreement include fraud, coercion, or failure to disclose assets and liabilities.
- Many family law attorneys can prepare premarital and marital agreements.
Do You Need a Prenup?
Premarital agreements in Colorado can help couples set expectations for their marriage. Many couples find peace of mind with a premarital agreement. Although they may not always prevent disagreements in the event of a divorce, they can provide a structure for handling assets and debts.
While they are not legally required, premarital agreements can provide financial and emotional security for both spouses during a divorce or upon the death of one of the spouses.
Philip Goldberg PC is a family law firm working with clients in Colorado. Contact our office today to schedule a consultation to discuss premarital or marital agreements.
