The Primary Reasons to Consider a Prenuptial Agreement
Minneapolis Prenuptial Agreement Attorneys
Getting married can be an exciting and romantic time in one’s life. However, getting married can also be stressful as there will be many important decisions that you will need to make before your wedding day. One such decision you will need to make is whether or not you and your partner want to fill out a prenuptial agreement. A prenuptial agreement (also known as a prenup) is a legal agreement that establishes the property and financial rights of each spouse in the event of a divorce.
While many couples who are planning their wedding find it hard to imagine that one day they may get divorced, the fact is that nearly half of all marriages end in divorce. This can make prenuptial agreements beneficial as, in the event of a divorce, they can make the divorce proceedings go much more smoothly, and amicably, than if you had chosen to forego this process. If you are getting married in the near future, here are just a few of the reasons you should consider a prenuptial agreement.
Second Marriages and Blended Families
An important reason to consider a prenuptial agreement is if this is you or your fiance’s second (or third) wedding, and you have children from previous marriages. In this situation, a prenuptial agreement can protect your children by determining which assets will be protected for the future of your children in the event of a divorce. Additionally, a prenuptial agreement can help protect your assets from being used to pay the arrears from your spouse’s previous marriage(s). This makes prenuptial agreements a good idea if this is a second marriage for either party.
One of You Owns a Business
It is also important to consider a prenup if you own a business. Even if you started the business before your relationship began, your spouse could try to claim a portion of the business in the event of a divorce, which could significantly impact your business’s cash flow during the divorce proceedings. A prenup can then be important as it will give you the chance to keep your business separate, making sure it is not subject to division in the event of a divorce.
Prenups Make You Discuss Your Finances
Prenups can also be beneficial for couples by making them discuss their finances. Finances are a common cause of stress in marriage, and one of the leading causes of divorce. However, the focus of a prenup is to discuss each of your finances including your income, debt, assets, and inheritances. For many couples, these are discussions they would not have had prior to marriage. A prenup can then force you to have a realistic discussion about money, your future financial stability, and as a result, you will be more likely to go into marriage on the same page.
You Have a Lot of Debt
When discussing your finances, you may discover that one or both of you has a significant amount of debt. In your prenuptial agreement you can decide how the debt will be allocated in the event of a divorce so that you are not left responsible for the other party’s debt.
Prenuptial agreements can prove to be highly beneficial for all couples no matter their financial state, as they can allow you to make important financial decisions, and make realistic plans for your future, before you get married. If you have recently gotten engaged, contact us to learn more about the reasons why you should consider a prenuptial agreement before you get married, as well as to learn about the many benefits a prenuptial agreement can provide.