Appendix E Additional and Optional Terms

• Library: Premarital Agreements: Drafting and Negotiation (ABA) (2017 Ed.)

Appendix E

Additional and Optional Terms

Transfers During Marriage

One-Time Cash Gift

In order to provide financial security for SPOUSE TWO, and as additional consideration for the execution of this Agreement, on or before___, SPOUSE ONE shall transfer to SPOUSE TWO the sum of $___in cash. Upon receipt, these funds shall become SPOUSE TWO's separate property. The parties agree that SPOUSE TWO shall have the right to invest these funds to provide for his/her future security and that he/she shall not be expected to use the principal or income for his/her or the parties' routine living expenses during the marriage.

Nonowner Spouse Accrues Ownership Interest in Specified Real Estate over Time

Beginning on the___th anniversary of the parties' marriage and continuing annually thereafter on each subsequent anniversary of the parties' marriage, SPOUSE TWO shall accrue a___percent interest in the___property until such time as SPOUSE TWO has a___percent interest in the property; provided, however, that SPOUSE TWO shall not accrue any additional interest after a marital separation as defined in Paragraph___. SPOUSE ONE shall execute and record the appropriate transfer documents to transfer such interest to SPOUSE TWO as a tenant in common within 30 days after each such anniversary.

Contribution to IRA

Annually, not later than___of each year during the parties' marriage, SPOUSE ONE shall make a contribution to SPOUSE TWO's Individual Retirement Account in the amount of $___[Alternative: in the maximum amount permitted by law].

Payment of Expenses During the Marriage

Share Family Expenses Pro Rata; Each Party Pays Personal Expenses

1. The parties agree that upon marriage they will establish one or more joint bank or financial institution accounts for the purpose of paying their shared marital and household expenses, including any marital debt incurred for such expenses as defined in Paragraph___. The parties shall contribute pro rata to the account in accordance with the ratio that each party's gross income bears to the sum of the parties' gross incomes. Initially SPOUSE ONE's pro rata share shall be___percent and SPOUSE TWO's share shall be___ percent. The parties' pro rata monthly share shall be redetermined annually effective on___using their gross incomes for the prior calendar year.

2. The joint account shall be used to pay the following types of debts and expenses:

(i) the expenses of any children they may have together;
(ii) if the parties jointly own a home, the payments on any note secured by the property to the extent proceeds of the loan were used for acquisition costs, as defined herein;
(iii) the usual and ordinary household expenses of the parties' home, whether or not jointly owned, including homeowner's insurance, utilities, cable and Internet services, telephone service, lawn maintenance, routine repairs and maintenance of the property, cleaning services, and other necessary household services;
(iv) the purchase of household equipment, small appliances, furniture, linens, and items of a similar nature;
(v) food and groceries for the household;
(vi) family health insurance premiums;
(vii) family entertainment and vacations;
(viii) all other expenses of a family or household nature;
(ix) payments of principal and interest, and other charges, such as loan fees and penalties, for debts incurred by the parties on credit cards, lines of credit, or otherwise, for shared or marital expenses as defined herein;
(x) charitable contributions not exceeding $___per donee per year and any additional amounts as the parties may agree;
(xi) routine holiday, birthday, and special occasion gifts to others, including the parties' adult children and any grandchildren, not exceeding $___per year per donee and any additional amounts as the parties may agree;
(xii) all other expenses that the parties jointly agree to share.

3. Each party shall maintain separate bank and credit card accounts for the purpose of paying his or her own personal expenses. Each party shall be separately and solely responsible for paying for his or her personal expenses, such as clothing, transportation, including costs for acquisition, insurance premiums for and maintenance of his or her own auto, meals at work, personal care, such as haircuts and nail treatments, uninsured medical expenses, any debts incurred by him or her for such personal expenses, and all other expenses of a personal nature; contributions to savings and investments, retirement plans, and IRA accounts; life and disability insurance; acquisition of property for investment purposes, and the costs and expenses of maintaining his or her separate property investments; the costs of any real estate owned by the party, including payments on the note secured by the ___property, and any other liens on the property, property taxes, major repairs and improvements, and the cost of major appliances, fixtures, except as set forth in Paragraph 2, and other items of a similar nature; personal property taxes, if any, on his or her separate property; political contributions; charitable contributions exceeding $___per donee per year and for any gifts to the extent such contributions or gifts exceed $___per donee per year.

Nursing Home and Other Expenses of Long-Term Care

The parties agree that each shall be solely responsible for the cost of his or her long-term care, such as home nursing and other home care necessary to assist with the activities of daily...