USA – MINNESOTA Trends and Developments Contributed by: Lisa Spencer and Sarah Hewitt, Henson Efron
parties set emotions aside and allow ample time for negotiations. • Find an experienced attorney who drafts prenuptial agreements on a regular basis, and stays up to date with changing laws. A prenuptial agreement is a contract between two consenting adults. Unlike business contracts, however, courts will carefully scrutinise prenuptial agreements for fairness. Each party should have separate legal counsel of their own choosing. If one party is not able to afford legal counsel, the other party should make funds available for that purpose. • Prepare a complete and accurate financial state - ment. Full disclosure of finances before signing the agreement is essential, and a statement of assets, debts and income should be attached to the agree - ment. While a written disclosure is not required in every state, it is a best practice to mitigate the risk of an enforcement challenge.
• Articulate your circumstances and expectations. It is important to disclose why certain assets need to be protected. For example, your business may present a particularly difficult valuation issue that both parties wish to avoid. It is also important to state that the parties believe the agreement will be fair and should be enforced, even if circumstances change. For instance, both parties may intend to continue working, but they should verify their inten - tion that the agreement be enforced even if one party leaves the workforce and relies on the other party’s income. While prenuptial agreements are more common today, they are still a topic of conversation not easily broached. Contrary to popular perception, however, a good prenuptial agreement is not about creating an inevitable, unhappy ending, but rather, about planning for possible future events, with input from both spous - es in an honest, forthright and respectful manner.
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