Purpose of the Marriage Contract
The purpose of this marriage contract agreement is so that both parties who have willingly agreed to get married by law, should be legally protected should the couple choose to separate or divorce, as opposed to being bound by the terms of the Family Law Act. This gives the couple the opportunity to organize their financial and other set of conditions in case of a future divorce and control the property status regarding all existing goods prior to the marriage union and the unsettled property in the course of the marriage union.
What is a marriage contract?
A marriage contract is a special form of contract as it is a legally binding document between two parties and gives certain rights, and responsibilities to both parties but does not extend to individuals who are simply cohabitating.
Due to a Marriage Contract being an agreement which provides custom-made rules that are private and signed by two parties. A marriage contract can be signed before or after the wedding has occurred. Furthermore, it allows the married couple to willingly show their financial information to their partners such as assets, debts, and liabilities during the time of agreement.
Matters to be addressed in this marriage contract
Before you get married, any who has walked down the isle or waiting at the alter, can vouch that having a marriage contract is extremely important especially if both parties have assets or property of their own. They are they are many reasons why it is advised that a marriage contracted should be drafted, although some 🔗key terms to a marriage contract also need to be considered. Below we will address some matters which should be addressed in a marriage contract. The following matters should be addressed:
Pre-marital Assets of the Parties
Each party accepts to reveal any and all property and assets owned and controlled by them before the date of the marriage. The properties might include but are not absolute to, land holdings, investments, personal belongings, and savings accounts. The parties acknowledge that the aforementioned properties are their individual property and shall remain their individual property throughout the marriage.
In the scenario of a divorce or separation each party understands that they shall keep their individual property and that such assets shall not be involved in the division of the marital assets. However, if any pre-marital assets are amalgamated with marital assets or are used in any way that is considered to be advantageous to the marriage then such assets may be divided as marital property in adherence with the laws of the applicable jurisdiction.
Property Which has Been Obtained During the Marriage
We are all aware that life is unexpected, anything can happen at any time. Therefore, if you have property which is believed to be inherited or property regarded as gifts, even if it will not be part of the couples marital assets. You should consider authorizing your partner to act as the authoritarian on your behalf should anything happen to you, an 🔗authorization letter is required in order to permit this. all property and assets gained by either party during the marriage shall be observed to be marital property and will be divided equally in case of a divorce or separation, in adherence with the laws of the applicable jurisdiction.
Spousal Support
In the scenario of a divorce, both parties engaged in the marriage agree and proclaim that none of them will demand alimony payment or spousal support from the other party. In the scenario that either party goes through a circumstance which is believed to be remarkable such as a loss of employment or a significant health issue, the spousal support agreement may be renegotiated.
If the parties have a child and go through a divorce before the child obtains adulthood, alimony shall be paid to the party who has obtained custody of the child, in adherence with the laws of the applicable authority. After the child obtains adulthood, the payment shall be made directly to the child. In the event that the parties have more than one child this clause shall apply to each individual child, separately. Both parties agree to amend any disputes that may arise about spousal support through mediation or negotiation before seeking intervention of a court room. Both parties therefore agree that this shall be done in good faith.
Personal Finances
Both parties accept that each party has an individual bank account, financial liabilities and obligations, and that financial individuality shall be kept throughout the marriage. Each party shall take individual responsibility of their own liabilities and financial obligations taken on before and during the marriage.
Both parties make a mutual agreement to keep their credit cards and bank accounts separate throughout the duration of the marriage. In the event that decides that your home address changes, you decide to get a bank loan, stop or authorize payments, or the married couple chooses to have joint accounts whereby more information can be found on 🔗Better Money Habits, after or before the wedding.
You are required to notify your banking institutions of these changes or adjustments, our 🔗Bank Letter Templates have been created in order to smoothen this process for you. The parties agree to equally divide their shared living expenses and both parties come into terms that joint funds shall not be utilized for an individual’s personal expenses or purchases without prior consent from the other party.
Furthermore, both parties acknowledge that if either party is unable to support oneself financially as a result of illness, unemployment, disability, or any other situation which may hinder that parties’ financial abilities, the other party agrees to financially aide the other party on a temporary basis.
Create A Marriage Contract With One of Our Free Editable Marriage Contract Templates
Creating a contract is not easy when it comes to legal matters. The best way is look at a marriage contract example in order to reference all the conditions you may need to consider. After which, you can commence with creating one of your own. Using our Marriage Contract Template, they have been written in a way which allows you to do this in just three simple steps. Steps to follow I order to create your Marriage Contract Template:
- Select our templates.
- Fill in your information by answering our quick questions.
- Review and download your Marriage Contract PDF document, then it will be Ready to use.
A marriage contract agreement is therefore highly recommended for all individuals whether you are entering the marriage with or without sharable assets, regardless of your financial or economic status. It’s important to take care of note that in order for a marriage contract to benefit both parties, all the terms of the marriage need to be clearly stated. Should you omitting anything important, this might result in tension or unnecessary issues occurring in the event of divorce, separation or the unfortunate demise of one partner.
