A prenuptial agreement is a legally binding agreement created by two people before they choose it to marry each other. In the prenuptial agreement, the couple outline issues such as the property that is brought into the marriage by each person and any property that is acquired during the marriage and, what the property rights of each will be should they ever got divorced.
Do you Need a Prenuptial Agreement?
There used to be days when prenuptial agreements were only for the rich, but those days are long gone. If you plan to own a property together and one of the other of you give up a career to raise children or, have your own income that is separate from your partner; you need a prenuptial agreement.
Couples that are just starting their lives together can outline more than just the financial responsibilities of each should there be a divorce, but they can also put in writing their expectations of each as far as their behaviour during the marriage. And what will occur should their expectations not be fulfilled. For example, if both parties agree that the wife will stay home to raise their children, the husband can’t just one day leave the marriage and then argue in court that he “tried” to get his wife to go to work and she refused his request.
Another example would be that no one marries their partner and expects them to cheat. You can outline the financial complications of cheating that leads to divorce in a prenuptial agreement.
Here are the top 8 reasons why you should have a prenuptial agreement
Addressing debt obligations
Traditionally, prenuptial agreements have been used to determine and outline what will happen to assets that either partner brings into the marriage or acquire during the marriage. These agreements can also be used to address any debt obligations that are brought into the marriage, or acquired during the marriage.
A divorce can lead to financial disaster.
Divorce can cause significant financial problems for years. While no one wants to think that their happy marriage could end in a divorce, ending up on the wrong side of a divorce can cost you your financial stability and your credit rating. A prenuptial agreement can protect you against this, and also the significant legal fees that would arise during a divorce.
A prenuptial agreement protects victims who are blindsided by divorce.
In this case, one partner may have a divorce sprung on them without anything time to prepare. A prenuptial agreement can at the very least ensure there is a plan in place.
It can help protect a business.
If you enter into a relationship as a business owner or a part owner in a business, a prenuptial agreement can help you protect your ownership. This can be especially important when a family business is involved.
Get a better understanding of your partner’s needs and requirements.
Drafting an agreement can bring up difficult and awkward discussions sometimes, it’s also an opportunity to have an open and honest discussion about finances, family planning, and other important issues before you get married. This can give you an excellent opportunity to learn more about your partner’s needs, motivations, and concerns before the big day. The very act of agreeing can reveal many things you have in common.
It can ensure the marriage is about the relationship, not the assets.
If you have substantial wealth or you are much richer than your partner, it makes sense to enter into a prenuptial agreement to protect your assets. This agreement before marriage can also ensure that the marriage is really about your partner marrying you for who you are, not what you own.
You are remarrying.
When you remarry, your concerns are often very different than in your first marriage. You may have children from a previous marriage, own a property or other significant assets of value. A prenuptial agreement can ensure that when you pass away, your assets are distributed according to your wishes and that neither your family nor your new family are cut out.
It can help protect the financially weaker partner.
Many people assume that these agreements are about protecting the wealthier partner, but they can also offer protection for those who are not well off before the marriage or earn far less than their partner. It can be used to ensure the financially weaker partner receives sufficient assets in a divorce and is not left poverty-stricken.