If you’re thinking of getting married soon, you’ve probably considered getting a prenuptial agreement. However, if you’re like many others, you might have given up on the concept because of what you’ve read or seen in common situations and even in the media. Prenuptial agreements, for example, are commonly considered to exist to safeguard the “richer” partner from losing assets and money in the event of a divorce. In actuality, prenuptial agreements assist you and your spouse establish trust and open communication right from the get-go. Let’s take a closer look at this.
What is a Prenuptial Agreement
A prenuptial agreement is a legally binding contract that states the financial matters you and your spouse would like to discuss before you get married. The purpose of the prenuptial agreement is to help you avoid misunderstandings that could lead to a messy divorce later on. However, a prenup can also spell out financial roles and responsibilities during a marriage. A couple will define their respective property and finances with a prenup before getting married.
Why is a prenuptial agreement good for a marriage? Having a prenuptial agreement gives you and your spouse the ability to plan and discuss your finances right from the start of your relationship. By creating a prenuptial agreement before you get married, you can protect yourself from any financial problems that may arise in your marriage.
Without a prenuptial agreement, you are automatically subject to the laws governing marriage in your state, and any assets or income generated during your marriage are usually divided evenly. Having a prenuptial agreement in place will help clarify issues that may arise during your marriage. Here are some other reasons why you should consider a prenup.
Clarifies Pre-marriage Debt. Prenuptial agreements are commonly used to specify what happens to assets brought into the marriage or acquired during the marriage by either spouse. Prenups can also be utilized to resolve any debt commitments brought into or acquired during the marriage, which is a benefit that applies to all income levels of spouses.
Protection from Sudden Divorce. Many divorces occur as a consequence of months of arguing or a big life event, but they can also occur as a result of one spouse being caught off guard. In this situation, a sudden divorce may catch one spouse off guard. Having a prenuptial agreement before the entire ordeal can guarantee that a separation plan is in place. Spouses won’t have to scamper for a divorce lawyer, as the prenup would have taken effect in protecting them.
Safeguards Pre-existing Business. If you are a corporate owner or a part owner in a corporation, a prenuptial agreement can help you protect your ownership. This is especially critical when dealing with a family company.
Covers for the Less Financially Able Spouse. Many people believe that prenuptial agreements are only used to protect the wealthier partner; nevertheless, they can also protect couples who were not affluent before marriage or earn significantly less than their spouse. A prenup can be used in the event of a divorce to ensure that the financially weaker spouse receives alimony or appropriate assets and is not left impoverished.
Helps You Become Realistic and Honest. Perhaps the most important benefit of a prenup is that it allows you and your spouse to have open and honest discussions while you are most in love. If the marriage fails, any concerns that might have been resolved earlier will become huge power clashes during the divorce. Should this ever happen, the prenuptial agreement will prevent many of the most significant financial issues.
Settle Financial Issues Formally. When a couple divorces, determining how much spousal support should be given may be a contentious and costly subject. Most people are surprised by the amount of spousal support that is owed, especially when one spouse earns much more than the other. A prenuptial agreement may allow the parties to forego spousal support, set a precise sum, or agree on a formula for spousal support. This is a crucial consideration if one partner wants to stay at home to raise children.
Having a prenuptial agreement isn’t a sign that you’re expecting your marriage to fail; far from it. Instead, it’s making sure that both of you are protected, regardless of what happens. Nowadays, it’s important to be practical, critical, and realistic versus simply assuming or hoping that things will work out. And a prenuptial agreement is a great way to enforce that practicality and realism.