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Should your prenuptial agreement have a sunset clause?

| Jul 3, 2020 | Family Law |

Maybe you’re a young entrepreneur who has already started building your business and your nest egg, and you simply want to protect them. Maybe you’ve already had a trip down the aisle and it didn’t work out, so you just want some rules set down in case you end up in the same situation.

A prenuptial agreement doesn’t sound like a bad idea, but your intended spouse isn’t so keen on the idea. They feel like any agreement you make now can’t possibly fairly address their circumstances if a divorce takes place 10, 20 or 30 years into the future.

A sunset clause might help. Sunset clauses are built-in expiration dates that cause an agreement to expire. With a prenup, you essentially give yourself a chance to enter the relationship without fear of the financial consequences of a divorce and see if it works. If the marriage works, the agreement eventually becomes void on a future date — whether that’s a few years or a decade in to the future.

For your intended spouse, this can make the idea of a prenup much more palatable. It may even be fairer than an open-ended agreement. The biggest thing to remember about prenups is that they’re contracts. As long as the terms are reasonable and fair and you have adequate legal representation before you sign, you’re generally free to negotiate any agreement — including clauses — that works for your unique situation.

If you’re thinking about the future, there’s no reason to expect that your intended spouse isn’t as well. Both of you want to protect your interests. Now is the time to come together and negotiate an agreement that works for you both.

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