A prenuptial agreement is a legal document that details how a couple will divide assets and handle financial matters if divorce happens. In New Jersey, prenuptial agreements can help protect individual assets significantly.
But these agreements might also hold potential pitfalls that could influence the financial and emotional well-being of the involved parties. Identifying red flags can help ensure that terms are fair to both parties.
1. Unfair division of assets
An unfair division of assets stands out as one of the most significant red flags in a prenuptial agreement. This can occur when one party keeps a substantial majority of the assets or when the agreement severely limits one party’s rights to shared property.
For instance, if a prenuptial agreement specifies that one party will maintain all assets gained during the marriage, a court may not uphold it, viewing it as unfair.
2. Rushed signing process
A rushed signing process represents another red flag. New Jersey law demands that both parties have enough time to review and understand the prenuptial agreement before signing it.
If someone pressures one party into signing the agreement quickly without understanding its implications, it may become invalid.
3. Unrealistic provisions
Unrealistic clauses or expectations, such as a significant decrease in spousal support in case of a divorce, can serve as red flags. Moreover, any clauses attempting to dictate personal behavior, like appearance or weight, are unenforceable and might signal manipulation or control.
Being vigilant and seeking clarity about any potential red flags when considering signing a prenuptial agreement in New Jersey can help prevent future financial and emotional complications.