A prenuptial agreement (sometimes called a premarital agreement or a prenup) is a written agreement between two parties before they get married. It clearly states the ownership of belongings (such as money, assets, and property) and explains how these will be divided in the event of a marriage breaking down. To learn more about prenuptial agreements, please visit Omnlaw. This article explains how prenuptial agreements in bankruptcy can affect you.
You may also want to read this article on bankruptcy and inheritance money.
How valid are prenuptial agreements in bankruptcy?
Prenuptial agreements are not always valid in bankruptcy. There are cases being made at this moment that are testing the law. You will find that the rights are similar to those in divorce.
What happens to our house?
If your husband/wife goes bankrupt there is a good chance that he/she has no interest in your property. Even If the bankruptee pays some of the costs towards the house, such as board and lodgings and you pay the mortgage payments and household bills. The worst case scenario could be that you might be asked to buy them out of their interest in the house for a nominal sum. For more information, please read our article on beneficial interest.
You might also want to read our article on going bankrupt and keeping your house.
What about my car?
If you have a car loan in your name, then it won’t be included in your spouse’s bankruptcy and you can carry on paying it. However, if your spouse is the owner of the car it may be taken in bankruptcy and sold. You can read more in our article, car ownership and bankruptcy. You might also want to read our article on how your belongings will be affected in bankruptcy.
Still need help?
If you have any further questions about the bankruptcy process please contact the Debt Advice Foundation.