Think that prenuptial agreements are only for the wealthy? They’re not. While prenuptial contracts are more common among those with significant assets, more couples are signing on the dotted line before they say I do.
A prenuptial agreement is a written contract between two people prior to marriage. It outlines each person’s current assets and how those assets will be divided. By signing a prenuptial agreement, you can protect your financial position if the marriage fails. Here are some other reasons people may enter into a prenuptial agreement:
Avoid Lengthy Divorce Arguments
Deciding how things will be divided when a couple is in love can result in fewer arguments than when the relationship is no longer working. Those who have witnessed messy divorces may want to prevent that possibility by signing a prenup.
Protect Children from Prior Marriages
Maintaining separate assets for children from prior marriages may be a priority for some couples. A prenuptial contract can establish an outline for asset allocation that protects the rights of children in the case of divorce or death.
Shelter from Debts
Prenuptial agreements more than just your financial assets. They can protect spouses from each other’s debts or other financial issues. The prenup can cover future debts as well. For instance, if one partner is considering going to medical school after the marriage and will accrue significant student loan debt, a prenuptial contract can protect the other partner from being responsible for that debt in the case of divorce.
There are many reasons to enter into a prenuptial agreement. Consider a prenup as a tool to protect yourself, the same way you buy insurance for your car or house. You aren’t planning for an accident to happen, but you are putting a plan in place to protect yourself and your partner should the worst happen.… Read More..