Premarital or prenuptial agreements, once associated only with the rich and famous, have become accepted practice for most couples planning to marry. A prenuptial agreement provides couples with significant benefits – both for the well-being of the financial relationship between them and the overall well-being of their relationship going forward. Marriage can have serious legal consequences such as property issues, child support issues, and the risk of palimony lawsuits. The time to consider all these consequences is before the marriage and to do the necessary planning to avoid possible complications should the marriage end in divorce.
Drawing up a prenuptial agreement helps couples learn more about each other like their individual views on money, their money management skills, and reveals the assets and debts they each have. During the process, couples get to know what they need to know about each other when it comes to money matters. Disputes about money are often the main cause of marital break-ups and one of the main reasons is the failure to have honest and frank discussions about money before tying the knot.
When financial information is put on the table it helps couples become more educated about their financial future together and opens discussions about how finances will be dealt with during the marriage and how issues will be resolved in the event of a dissolution of the marriage. These discussions may lead to one or both partners deciding that they cannot handle the way the other person deals with money and bale out before it is too late, or it may strengthen the relationship. Issues to be considered when entering into a prenuptial agreement include:
Keeping Property Acquired before the Marriage Separate
People often bring financial assets to a marriage. A premarital agreement serves to confirm that personal assets will remain separate and dealt with as stipulated in the agreement if the marriage does not work out. Property matters often get mixed up after people get married and a prenup signed in advance sets things out clearly and will save a lot of money and time when things end up in a divorce court.
Spousal Support Liability
Some states have a legal presumption that spouses are obligated to support one another for life when the marriage has endured for a certain number of years. Through an agreement, this legal standard can be modified or support can be avoided altogether. When spousal support is not an issue a divorce settlement is much easier.
A Prenuptial Agreement can Serve as a Divorce Decree
A properly drafted prenuptial agreement can be approved by the court and serve as a divorce decree. It simplifies matters and eliminates disputes to fight over, which could save a fortune in lawyer’s fees and months in court. An agreement spells out the parameters of settlement without having to leave it to the discretion of a judge.
Freedom from a Partner’s Debts
A properly drafted agreement that is publicly recorded places creditors on notice. In many divorce proceedings, one partner discovers that the other had incurred debts unbeknownst to them. A premarital agreement can clearly stipulate that in such a case the debt remains the responsibility of the spouse who incurred a debt that the other spouse has had no benefit from.
Protection for Inheritance
Prenuptial agreements can serve as protection for property that rightfully belongs to children from a previous marriage.
Freedom to Spend your own Money
Money is one of the most frequent problems that arise in marriages. If both parties have come to the marriage with assets, a prenuptial agreement can avoid arguments about who spends what as each person is free to use their individual assets stipulated in the agreement as they like.
The law is not always fair to everyone. A premarital agreement gives each party the ability to determine the rules to be applied to the assets they own without leaving it to the legislature or the courts to decide. By planning your financial life together in advance you can be in control of your future. A premarital agreement gives you the opportunity to address expectations in advance including who will pay for what, whether property will be shared or not, whether a joint bank account will be used for living expenses, and many more aspects of your financial life together. When everything to do with financial matters are set out in black and white it leaves little or no room for the concept of false expectations, a typical source of stress and disappointments in marriage. To know more about us visit the website at https://deanhineslawyer.com.