People who have considerable assets when they are getting married need to have a prenuptial agreement. This helps to ensure that they are protected if the marriage doesn’t last. The agreement outlines the terms of how things will be divided in a divorce, so each party must understand the terms before they sign. With very few exceptions, prenuptial agreements are enforced by the court.
The prenuptial agreement can cover assets that one person owns when they come into the marriage. This helps to protect them from losing those if there is a divorce; however, this can be a challenge in some cases because the prenup can’t overly favor one party.
If you or your future spouse has debts, including student loans, the prenuptial agreement protects the other spouse from having to pay those. Other debts might also be addressed.
Prenuptial agreements aren’t a popular topic, but the benefits are clear. Not only do both parties have specific protections, it can also save them money if they do divorce. Since everything in the prenuptial agreement only has to be split as outlined in the prenup, they can focus on the other assets and debts when they split up.
People who have children from a previous relationship can use a prenup to ensure those children are treated fairly. This can also benefit people who are going through a high-asset divorce because you won’t have to worry much about your child’s standard of life changing dramatically if you do end the marriage.
Whether you have a prenup or not, you need to think carefully about each decision you have to make in divorce. It’s only smart to plan ahead and take each step slowly.