An Overview of Prenuptial Agreements in Colorado

In the world of family law, a thoughtful approach to creating security and certainty is of the utmost priority. As families undergo significant change, whether through divorce or marriage, thoughtful planning and preparation enable individuals and families to remain focused. In Colorado, premarital, also known as prenuptial, agreements carry legal force and often serve as the basis for a successful relationship. Premarital agreements can be a valuable asset that promote effective negotiation of issues that may later arise . A prenuptial agreement in Colorado is a lawful contract between prospective spouses, which regulates aspects pertaining to property, financial obligations and support obligations. Colorado law is very permissive regarding prenuptial agreements and can regulate many aspects of the marital estate. As a valid contract, the agreement must be entered into voluntarily, be based upon full financial disclosure and be conscionable at the time of execution and when enforcement is sought. A prenuptial agreement, like other contracts, can be challenged and potentially invalidated based upon fraud and other defenses.

Benefits of a Prenuptial Agreement Template

The use of a prenup template can reduce errors and develop an understanding of this complicated contract. Many couples have a hard time communicating at this stage, and having a formula is beneficial.
Saving Money
When you use a template, you begin with a framework. This way, you save money because you simply modify the existing template rather than starting from scratch. In fact, hiring a prenuptial lawyer can be one of the most expensive parts of the wedding. Your lawyer is also going to require that you complete a lot of paperwork. So the amount of documentation you have to provide can get overwhelming. Templates allow you to label the different sections and write what is relevant to your own personal situation.
Also note that when you use a template, there are fewer mistakes to make, like forgetting to include certain clauses.

Common Provisions in a Colorado Prenuptial Agreement Template

Like all prenuptial agreements, a Colorado prenuptial agreement template should adhere to certain conventions to ensure that it can actually be implemented upon divorce. Its terms should be guided both by the state law and a solid understanding of equitable distribution principles and economic realities. In general, a Colorado prenuptial agreement template should have sections for asset and debt division, waivers, financial disclosure, and a statement of choice of law.
In the assets section, the Colorado prenuptial agreement template should specify the actions taken with respect to separate or shared property in the event of divorce. There should also be a talk about what happens in the event of an increase of the value of separate property and whether any income will be considered separate or shared.
The debt section of the Colorado prenuptial agreement template should specify what happens to debt in the event of divorce and who will assume liability for the payment of debt. Respective rights to reimbursement for debts paid during marriage should also be laid out.
Even in the event that the spouse does not plan to waive maintenance, if maintenance is an issue, a template Colorado prenuptial agreement should at least address the right to attorney fees to ensure that the incapable spouse is represented in divorce proceedings. There is no guarantee that a court will uphold a provision in the actual agreement pertaining to attorney fees.
One of the most important parts of a Colorado prenuptial agreement template is the financial disclosure section. Every party to a prenuptial agreement has an obligation to provide full financial disclosure. Generally speaking, this means that the parties share information about the following: assets, debts, income, expenses and pension benefits. Full disclosure in this document is essential to upholding the agreement in court.
Finally, a Colorado prenuptial agreement template should contain statements about the choice of law. For example, if the parties were to get divorced in Kansas but the agreement was signed in Colorado, the document should indicate that Colorado law governs the agreement. This protects the agreement if either spouse later moves to a different state and the other spouse attempts to have it invalidated based on the fact that it was not written according to that state’s laws.

State Requirements and Enforceability

A prenuptial agreement is a powerful document that can ease some of the tension often following a divorce. However, it is worth noting that not just any document will do when it comes to a prenup. To be valid and completely enforceable, the terms of your prenup must meet the legal requirements set forth in the Colorado Uniform Premarital Agreement Act. This law lays out what a prenuptial document must contain—and what it must not—in order to be fully applicable.
As per the state law, for a prenuptial agreement to be legally binding, it is essential that both you and your spouse-to-be agree to follow the terms, and that you do so on a voluntary basis. The agreement must also be entered into following fair and reasonable disclosure of the assets and income for both parties.
It is also crucial to the legality of your agreement that the terms are both fair and reasonable—meaning they do not leave either spouse either significantly worse off than they would otherwise have been in their respective situations, or in a position designed to provide them with a distinct advantage during the marriage or a potential divorce.

Modifying Your Own Prenuptial Agreement

After obtaining a prenuptial agreement template that caters specifically to Colorado law and jurisdiction, it is critical to take the extra step to customize this basic form. This legal document serves as a legally binding contract which must stand up in court if ever called upon, and thus should rule out any ambiguity or questions that could be raised by opposing counsel. Colorado is one of the few states in which the prenup can be considered a legally binding agreement in and of itself, meaning that those who do not customize their copy to fit their individual needs may be at a disadvantage when it comes to court. It is for this reason that individuals are strongly encouraged to consider whether or not the template covers the following aspects: The above high-level topics only serve to provide a broad overview of the many factors which individuals should account for in order to personalize their prenup and ensure that it meets their individual needs . These topics should also be considered regardless as to whether the agreement is formed before or during marriage. For example, many who are not already in the process of clarifying pre-existing assets are surprised to find that their spouse may have a right to a portion of the inheritance they receive during marriage or after divorce. It would be ill-advised, however, for either party to simply add clauses to the template willy-nilly, as there are a number of "dos and don’ts" to consider when it comes to customizing a prenup. First and foremost, individuals are strongly encouraged to include clauses which address individual income for each party (if applicable) as well as the division of marital property in the event of death or divorce. Secondly, keep in mind that the prenup should not violate Colorado law nor should it entirely negate the responsibility of the other party should children enter the picture. To learn more about the legal considerations surrounding these factors, individuals are encouraged to seek counsel from a qualified attorney.

Pitfalls to Avoid

Common Mistakes to Avoid When Using a Prenup Template in Colorado
While there are many qualifiable benefits to utilizing a prenuptial agreement template in Colorado, this process is subject to common risks as well. Many of these risks can result in the unenforceability of your prenup.
Making your prenup incomprehensible
If you’re using pre-printed templates instead of actually writing your own with the proper legal jargon that the document should be rich with, you may wind up with a murky, confusing legal mess. An attorney will help you to avoid this issue by laboriously composing the agreement with the appropriate words, phrases and overall language so that the document is crystal-clear about what it does and does not cover.
Failing to list full, accurate disclosures
Disclosure is essential when writing a prenuptial agreement. This process entails being up front and honest about your assets and debts with your soon-to-be spouse. Failure to make proper disclosures or diversions to information during the drafting process will render your agreement likely unenforceable in Colorado, as the other party will not have the ability to interrogate the settlement.
Not consulting an attorney
All too often people think that they can just write their prenuptial agreements in Colorado themselves, and then have a general attorney look over the document. Don’t make this mistake! If you’re truly interested in having a legally sound prenup, it’s crucial to find an experienced, qualified family lawyer who will draft the agreement for you and make sure that it is comprehensive, fair and enforceable.

Resources for Prenuptial Agreement Templates

When it comes to finding a trustworthy source for a Colorado prenuptial agreement template, there are several options available. One of the most reliable is the American Bar Association (ABA) – the nonprofit organization for legal professionals that also offers resources and templates for the general public. The Colorado Bar Association’s website also has several quality resources available for free. You may also find them on popular legal websites and apps, along with other forms you might need. These shortcuts can be tempting, but they aren’t always trustworthy or even accurate.
The best way to ensure a quality prenuptial template is to follow a few basic guidelines. For starters, make sure the provider is a nonprofit like those mentioned above, or a law office that specializes in family law. If it’s free, you should also check user reviews to ensure that it isn’t more of a scam than a useful tool. You should also be wary of any customization provisions that require you to pay more to receive templates that are updated for your specific state. The price of these types of documents should be free or easily affordable, and custom tailoring should be included. You don’t want to pay for a document that will later require additional fees to receive things like names and locations entered in the right places.

What to Do After Creating Your Own Template

Creating your comprehensive prenuptial agreement is an accomplishment that should be recognized and celebrated. It is a process you and your partner must fully engage in if you are going to have the legal protection and peace of mind that come with this kind of legal document. Now that you have an idea of what kinds of legal language you should include, the next step is taking action… specifically on a few key points. Once you draft your prenuptial agreement, the first crucial step is to have it reviewed by a lawyer. While it is possible to validate the agreement on your own after it is drafted, it is not recommended, as the documents must be very specific and each state has different requirements and standards. As a newly engaged couple, you want to make sure that you will have the best possible deadlock insurance in case you need or want to pursue a divorce under Colorado law. Legal advisors are trained to write these types of documents, and to perform a type of quality check to ensure that a full understanding has been achieved by both parties . The most important thing to do before signing an agreement is to have it fully reviewed by an objective legal advisor. As soon as you’ve finished drafting it, you and your partner should take some time apart to have it reviewed by an individual who is knowledgeable about marital law in your area. If you both agree with all of the terms, and are satisfied that the agreement is clearly laid out in plain terms that each of you fully understand, then it is time to meet with the agreed-upon lawyer once more to get your agreement notarized, properly dated, and signed. Do not date the document until it is notarized. Again, the only individual who is permitted to do this is a fully certified public notary. Your lawyer will walk you through this process and explain how it works while it is happening. Now, you can begin your marriage satisfied that you are both protected by the comprehensive legal document that you have created and signed together, in the presence of a witness and a notary public.