While no one enters into a marriage thinking about divorce, considering how to protect yourself in the unlikely event of a separation from your spouse is essential to your financial wellbeing. Prenuptial agreements can be a tricky subject to address with your future spouse, but these legal documents provide security for you and your partner when you need it the most.
Prenuptial agreements, commonly referred to as prenups, protect an individual’s assets and or children from a previous marriage in the event of divorce. It is a common misconception that prenups are only needed in cases of extreme wealth. But the truth is that prenups are suitable a for anyone who wants to protect aspects of their lives in divorce or separation.
Not only do prenups protect individual personal assets possessed before marriage, but they also help you decide what happens to assets obtained during a marriage should the union dissolve. However, when drafting a prenup, you must consider a few key points to ensure your well-protected assets.
Determining the assets you are bringing into a marriage is essential to the foundation of a prenup agreement. Your assets are anything of value to you, regardless of their monetary value. Items such as family heirlooms that are priceless to you, art that should remain in your family, or a business you created before marriage all are examples of personal assets you should include in your Prenup.
In addition to tangible items, if one partner is significantly more wealthy than the other, a prenup can be designed to limit payable alimony after divorce.
A prenup allows you and your spouse to determine who will be in charge of your children’s property and financial inheritances in the event of divorce. While you can not use a prenup to determine physical custody of children, visitation, or child support, the document can be used to determine how children will inherit assets and property. In this way, a prenup helps you to avoid possible issues down the road.
Estate Plan Protection
A prenup agreement is also a vital estate planning document, just as is your last will. Prenups protect separate personal assets and property from being mixed with those that were obtained during a marriage. You can choose how your estate will be divided between your partner and any children you have, even limiting the inheritance of a spouse if desired.
Using a prenup in this manner is especially beneficial for people who have children from a previous marriage when entering into a new marriage. A prenup will stand as legal documentation in the event a will has not been signed before the new union, protecting your children’s inheritance as you deem necessary.
When considering the benefits of signing or drafting a prenuptial agreement before your marriage, consult with family law attorneys to ensure your legal rights are protected.