You must have heard about the prenuptial agreement before. Though the term is popular, not many people know about it’s inside out- why it is important, why you need it, and how it affects your marriage?
Though not many couples do prenuptial agreement, it’s becoming popular among millennial. Many of your marriage related problem can be avoided if you have prenup(prenuptial agreement). It makes many legal processes less complicated. In this article, we are going to tell you what’s a prenuptial agreement and why you may need it.
What is a Prenuptial Agreement?
A prenuptial agreement or prenup is an agreement that allows a couple to set and control many of the legal rights they have during their marriage and the fate of their property when their marriage ends by death or divorce.
The agreement has to be signed before the marriage. It is also known as a premarital agreement. The couple decides what is going to include in or exclude from the agreement. For example, the agreement could include spousal support but leave child custody and child support.
Why You Need a Prenuptial Agreement?
Prenup makes things really easy after a marriage. A lot of legal disputes can be avoided if the couple had a prenup. Here’s why you should have a premarital agreement-
A Safeguard to Your Finances
A prenup is essential if one partner earns much more than another partner. Many people worry about alimony at the time of their marriage. They deem it a huge financial blow. The alimony depends on the duration of the marriage and the amount of wealth. The longer the marriage lasts, the bigger the alimony gets. The only way you can avoid alimony is to do a prenup.
Your prenup should clearly state that there will be no spousal support after the divorce. With the prenup, you can make sure that your partner is not marrying you for your wealth.
The Desired Property Distribution
The property distribution after a divorce could be deemed unsatisfactory to you. Usually, the assets get equally divided between the two parties. It’s alright as long as both partners had an equal investment to acquire those assets. But, if one partner is only investing for the assets, he/she may not be happy about the equal distribution arrangement.
A premarital agreement can solve all the problems. Under the agreement, both parties can make sure that there will be no foul play. It can dictate or determine what happens to your home or personal property.
Protect You from Your Spouse’s Debt
Debt can be a serious issue at the time of divorce. One partner is not going to enjoy the unnecessary burden of debt of another partner at the time of their acrimonious separation. A prenuptial agreement can put a limit on one partner’s exposure to another partner’s liability. The agreement then needs to clearly outline the separate debt of each partner at the time of entering a marriage.
Protect Your Estate Planning
Estate planning is crucial for property management and distribution. A divorce could be a massive blow to your estate planning. It can reset your entire plan. Then you have to deal with it again with more pain and problems. A prenup can save your estate planning. It also helps you to protect your property from the court’s interference.
Ensure a Smooth Remarriage
A divorce already makes your situation messy. Things can get more complicated if you plan to remarry right after your divorce. You have to deal with a lot of things at the same time. What would be the fate of your joint assets, how are you going to take care of your children of a prior marriage and many other things?
With a prenup, you can outline many of the things before marriage. So when it comes to marrying again, you don’t have to worry about a lot of things.
Avoid Legal Problems
We all know that a divorce is a complicated nerve-racking process. You may have to engage in a lengthy court battle with your partner about spousal support, child support, child custody, visiting hour, property distribution, and many other things.
A prenup can help you to outline these issues before your marriage. This way, it can alleviate some of the pain of a divorce.
Save Your Business
If you own a business, your ex-partner can rightfully claim a portion of your profit after the divorce. This is not a good thing for business from any perspective. And your ex-partner could care less. Do a prenuptial agreement with your partner and save your business.
A prenuptial agreement is a practical solution to many of your marriage /divorce-related problems. Though prenup has many benefits, many couples are reluctant to do it. They find it anti-romantic or too practical. Well, I don’t have a counter logic for that. All I can say is, ” It’s better safe than sorry.”