With so many celebrity marriages ending in divorce, the need for a prenuptial agreement is growing in significance. Part financial planning, part legal document and part romance-killer (allegedly), a prenuptial agreement isn’t just for wealthy folks and/or celebrities. Despite its reputation, there are actually some real benefits to having a prenuptial agreement.
1. You can protect your assets
Prenups protect assets, so they are excluded from the pot of assets on separation or divorce. They can also make specific provisions for what one party should receive on separation or divorce, thereby securing parties’ positions for the future. A prenup also avoids uncertainty and in turn disputes, providing reassurance that the parties are together for the right reasons and not simply because one is wealthy.
2. You can come clean
Prenups preserve the expectations of the parties and prevent surprises in the event of a divorce. For a prenup to stand the best chance of being enforced by the Court, there should be an exchange of full and frank disclosure between the parties prior to entering into the terms of the Agreement.
3. You can protect the financial stability of your children
Upon your death, a prenup may award certain property to your children instead of your surviving spouse. Consider that the surviving spouse can do what they wish with your property, including give it to their family or other children. I often recommend to my prenup clients that they return to my office after the honeymoon to draft an estate plan. Prenups do not protect from probate.
4. You can protect family assets or property acquired before the marriage
A prenup agreement may ensure that family heirlooms remain in your family by requiring that they be given to a named family member instead of your surviving spouse.
5. You can evenly distribute debts
Prenups can determine how liability for debts will be distributed between the partners. They can also help protect each party from issues with creditors.
Actually, there a lots more than just 5 reasons to say "I do". If you are interested in learning more, please give us a call. A prenuptial agreement is a powerful, protective document for anyone who is contemplating marriage. Such an agreement can protect your interests and goals going into a marriage and ensures that an unsuccessful marriage does not permanently injure you or your family members.