Entering a prenuptial agreement before marriage can be a wise decision based on the circumstances. This document can establish what happens to the couple’s assets in case of death or if they ever decide to divorce. Some couples may pass on creating this agreement, but others may consider it necessary if they have complex assets that could be challenging to divide.
This type of agreement can include various provisions concerning the couple’s assets, impacting property division during divorce. It can have different effects based on what the couple included in the document before marriage, such as the following:
- Draw clear boundaries between each party’s debt, protecting them from becoming liable for the other’s loans and other financial obligations.
- Set aside the party’s assets that will be inheritances for children from prior marriages, keeping them separate from other properties.
- Keep business assets separate to protect the company and its co-owners from the potential effects of divorce.
- Organize finances to help the couple foresee the financial effects of the divorce process, helping them plan appropriately.
A prenuptial agreement can also cover other aspects of the couple’s finances and assets. Its coverage can vary, depending on the couple’s situation and their needs before marriage.
Preparing by drafting a prenuptial agreement
Getting married is a significant life event that requires preparation. A prenuptial agreement may seem unnecessary, but some couples may benefit from it overall. It may be helpful in property division during a divorce, but it can also provide direction in uncertain situations, such as death.
To determine if this arrangement is appropriate for a couple, seeking legal counsel can help. By doing so, the couple can address issues that may arise later and include provisions concerning their unique circumstances.