Prenuptial agreements, also known as prenups, are common in many marriages – but must take place before the marriage. They allow a couple to set terms of property rights for their marriage, which offers many protections along the way. In marriage, you never plan for a divorce. However, this happens to many people every year and so these protections are especially important to have in place. But are prenups for everyone?
Typically, wealthy people will use prenups because they are afraid that something will happen to their assets if they do not. However, they are not just for wealthy people. They can be used to protect a party’s important assets, protect a party from assuming the debts of the other party, determine how property will be distributed after death, clarify financial rights, and avoid costly disputes if divorce occurs. If you do not receive a prenup, your state has family laws that will determine how your property will be handled.
Pros and Cons of Prenuptial Agreements
Pros: These agreements can protect inheritance rights from a previous marriage, protect your business, protect a debt-free spouse from obligations of the other spouse, cover the details of decision-making, and limit the amount of spousal support that one spouse will have to pay upon divorce.
Cons: The downsides of these agreements is that they may give up your right to inherit from your spouse’s estate, give a spouse a sense of distrust, limit spousal support in a way that affects a spouse’s ability to survive after divorce, or give financial concerns to one spouse.
Prenups are still used by the courts today. Every state allows prenuptial agreements to this day, especially due to the fact that divorce and remarriages are becoming more commonplace. Because they are valid and working in our modern times, you can speak to us today about how prenups work and how we can help you plan for the future.
