Prenuptial agreements are often associated with high-profile marriages, but the truth is that there are many good reasons that a soon-to-be-married couple might prepare a prenuptial agreement. Here are some of the most common reasons for having them.
Difference in Assets
When one spouse has a significantly higher income or more assets than the other, a prenuptial agreement can ensure that neither party is taken advantage of and that both parties will be financiall secure in the event of a divorce. A prenuptial agreement can also help to ensure that both parties are going into the marriage for the right reasons.
To Limit Alimony
A prenuptial agreement can be used in many states to limit the amount of alimony that is payable following a divorce.
To Designate Child Support
It can be helpful when entering into a marriage to lay out a plan from the get-go for how the financial burden of child support will be divided between spouses in the event of a divorce.
To Allocate Assets
An estate plan will help your family to know how to divide your assets should you pass away, including family heirlooms. A prenuptial agreement can enter the picture by ensuring that your spouse doesn’t overturn your estate plan after you pass away.
It’s possible that one spouse entering into the marriage has accumulated a large amount of debt, in which case a prenuptial agreement can prevent the other spouse from being responsible for those debts if the marriage ends.
If you happen to own a business, it is possible for a spouse to acquire a share in the business during divorce. A prenuptial agreement can prevent your spouse from becoming an unwanted shareholder after divorce.
When one or two parties entering a marriage has been married previously, several other legal and financial concerns can come into play. A prenuptial agreement can designate child support obligations, account for assets from a previous marriage, and how assets might be divided between families if you or your spouse passes away.
A prenuptial agreement can truly offer peace of mind, not to mention save a great deal of time and inconvenience in the future. If you and your soon-to-be spouse are considering preparing a prenuptial agreement for your marriage, contact us today for a free consultation or to schedule an appointment with us.