Prenuptial Agreements

Why is it important to get a prenuptial agreement?

A prenuptial agreement is a contract between two people who are going to be married. The legal document lays out how the property and finances of each person are divided. It can help to better define things during the marriage and can make divorce simpler. Getting a prenuptial agreement is important for several reasons.

Protect Individual Finances and Property

The law is very complex when it comes to separating the finances and assets of couples who have been married for a long time. It is not always fair. A prenuptial agreement is important because it will protect the individual finances and property of both spouses in the marriage. It will clearly delineate what finances belong to which spouse. It can also make clear what will happen with assets if the marriage is eventually dissolved.

Reduce Potential Future Legal Costs

The cost of a messy divorce can be enormous. The divorce could involve negotiations or litigation that requires months or years to resolve. This is largely because every small asset and sum of money will come under scrutiny. There might be conflicting claims about what was promised earlier in the marriage. A prenuptial agreement is simple to enforce when prepared by an experienced attorney. This can reduce potential legal costs if a divorce does occur.

Get Everything Out Into the Open

The reality is that hidden financial issues can ruin a marriage early on. Most people want to be as honest as possible with a new spouse. Something good about a prenuptial agreement is that it gets everything out into the open. The agreement will explicitly spell out the assets and finances of each person. This will help to solidify the marriage, build trust and lay down the financial boundaries in the relationship.

Keep Previous Debts Separate

Marrying someone can make both spouses jointly and severally liable for the debts the other person incurs. This means that both spouses can be held responsible for the debts. This can become a real problem over the course of a marriage especially when dealing with large debts. One way to resolve this problem is with a prenuptial agreement. The agreement will document which spouse is responsible for what debts so that everything is simple and unambiguous.

Avoid Legal Trouble If Situations Change

Something to consider is that financial situations can change dramatically during a marriage. A spouse who used to make nothing could suddenly come into a large fortune. This can cause stress within the marriage. It can lead to legal troubles if the relationship starts to fall apart. A prenuptial agreement will help to avoid these types of legal problems if financial situations change during the course of the marriage.