A sunset clause is a time-based element that defines the duration of the prenuptial agreement. After the sunset period, the terms and conditions outlined in the agreement may change or become void.
There are several benefits to including a sunset clause in your prenuptial agreement.
Accounting for changes in circumstances
A sunset clause can provide a built-in mechanism for reviewing and potentially modifying the terms of your prenuptial agreement when significant life events occur. You can then make changes for situations such as the birth of children or a significant increase in wealth.
Preserving fairness in the relationship
A sunset clause can ensure that your prenuptial agreement remains fair to both parties. It allows you to adjust the agreement to reflect contributions to the marriage and the needs of both spouses as they evolve throughout the marriage. When one spouse feels slighted during the initial agreement, a sunset clause provides them with peace of mind that the contract has an expiration date.
Encouraging communication between spouses
Including a sunset clause in your prenuptial agreement encourages open and ongoing communication between spouses. It fosters a collaborative approach to managing the marriage’s financial aspects, rather than a static and rigid agreement that may not account for changing needs.
Statistics indicate a 62% increase in prenuptial agreements as couples embrace the protections and peace of mind that these contracts offer. Including a sunset clause in your prenuptial agreement provides greater control over the contract term and its long-term implications for your relationship. You can determine the sunset period that best fits your situation if you include it in your contract.