A prenuptial agreement is an agreement made by a couple before marriage to secure their finances in case of divorce. The decision whether to get a prenup or not is a very personal one. Because each individual, couple and situation is unique, there is no one answer, but rather there are many things to consider. Many people don’t want to begin a marriage planning for its end, but sometimes a prenuptial agreement can be a wise financial decision. The following are some reasons you may want to consider a prenuptial agreement.
1. One Person Has More Money Than the Other
Whether from family money, an inheritance, income, property, investments or other assets, if one person in the relationship has significantly more money or wealth than the other, you may want to consider a prenup. A prenup can help secure the future of the assets and determine how they will be handled and divided if the marriage ends. This can also help determine a fair alimony in advance.
2. One Person Has High Debts
If one person in the relationship has a high debt load, the other person can become responsible for some of the debts if the marriage were to end. A prenup can ensure that the other person is not affected by the debts if the marriage ends.
3. One or Both Persons Owns a Business
If you or your partner is an owner or part-owner of a business, then in the event of divorce the other partner may be entitled to half or at least part of that business. A prenup can protect the business from division, which can prevent an unwanted partnership with a former spouse.
Pros of a Prenuptial Agreement
- Determining separate property
- Establishing a plan for separate and marital property
- Disclosing all finances, assets and debts before marriage
- Protecting your estate plan
- Reducing conflict and court proceedings during a divorce
Reality bites sometimes. If your marriage happens to end in divorce, the division of assets can be a messy process, especially if you and your spouse end on bad terms. Entering into a prenuptial agreement can allow you to make wise decisions regarding finances without emotions impacting the situation. A divorce lawyer Tampa FL relies on can review your situation and help you determine whether a prenuptial agreement is best for you or not. In addition, they can help prepare an agreement that fits you and your significant other’s situation.
Thanks to our friends and contributors from the McKinney Law Group for their insight into divorce.