Do you need a prenup? A prenup isn’t just for the wealthy, as they can be a useful tool for nearly everyone. Forbes’ recent article entitled “Prenuptial Agreement: What Is A Prenup & How Do I Get One?” explains that a prenup considers the end of the marriage so that the couple can divide assets with an objective mindset. This can be helpful for a variety of reasons that are often overlooked by many people.
Prenups allow you to determine if alimony will be due if the marriage ends, as well as the amount and terms of those payments. A prenup can also say what kind of bequests you leave to each other in your will. It can also be good for couples trying to keep separate a business or significant pieces of personal property, including future inheritances and other anticipated income. This is common for couples with a significant age or wealth difference and among older or remarrying couples. Additionally, prenups can help to:
Protect Family Heirlooms. If you have a family heirloom and want to make sure that if your marriage ends, you’ll get to keep it, you can draft a prenuptial agreement that states the family heirloom is yours.
Pass Property to Children from Prior Marriages. A prenup can be used to establish property rights for second marriages. If you have children from a previous marriage, you can protect their interests in your assets and property.
Clarify Financial Rights. Prenups can help you decide now how assets will be split up instead of waiting until things go south and you’ve begun divorce proceedings. While divorce will hopefully never come, determining the financial distribution now saves both time and emotional stress.
Debt Protection. Prenups also provide debt protection. Some people enter a marriage with substantial financial debts or student loan debt. For couples in this situation, they can sign a prenup and clarify that those debts remain the separate responsibility of the spouse who incurred them. They can also decide how debts incurred during the marriage will be handled.
Avoid Emotional Arguments. Divorce is emotional. It can be an overwhelming and upsetting process. When you’re negotiating with your spouse about assets, tempers can cloud your judgment about asset distribution. Contemplating these items in advance with a clearer head is better for everyone involved.
Determining whether you need a prenup requires some consideration of both your needs and wishes and those of your partner. For questions about prenups or estate planning, contact your estate planning attorney in Davie, Florida.
Reference: Forbes (Oct. 24, 2022) “Prenuptial Agreement: What Is A Prenup & How Do I Get One?”