When heading toward marriage, the last thing a couple wants to consider is divorce. However, divorce is a very real possibility for all couples, no matter how invested they are in making a relationship work.
Accordingly, creating a prenuptial agreement might be in your best interest. Prenups enact specific financial protections to ensure a smooth process in case of divorce. This guide goes over the facts of prenups to help you make the right decision.
How do prenuptial agreements work?
Prenups outline financial decisions in the event you and your spouse divorce. For instance, they can include provisions on the division of assets, such as homes, vehicles, and proceeds from retirement funds. They can also stipulate things like spousal support, including how much one spouse may owe the other if the marriage ends.
How will you know if you need one?
Prenups can protect you if you go into a marriage with lots of assets. In this case, you can create provisions that clearly define what is yours and what is your spouse’s, which will make the divorce process much easier should it occur.
Prenups are also beneficial in many other situations. For instance, business owners or people who have a stake in a family business often draft an agreement to protect their business interests. In case you have children from a previous marriage, a prenup will ensure that they receive your assets according to your wishes. Prenups can even safeguard one spouse from their partner’s debt.
In many cases, prenups can actually make marriages stronger. When both parties know and understand financial obligations and protections, they can participate in the marriage to the best of their ability. In this sense, prenups offer ample peace of mind.