Marriage is a tricky affair. But one way to make it easier is to plan and discuss every aspect so that you’re not blindsided in the face of an unfortunate event. This tragic event could even be something as serious as a divorce or your partner passing away. In such a situation, to make the transition easier, couples make use of a prenuptial agreement. Drafting a prenuptial agreement before getting married is very important.
What is a prenuptial agreement?
A prenuptial agreement, or prenup for short, is a contract that entails how assets will be divided among the couple in case of marriage dissolution. Couples usually use a prenup to figure out who will receive what parts of their property and how much of their debts will be paid off by each partner. Couples do not need to be extremely wealthy to draft a contract like this. Such a contract benefits people from all walks of life.
What are the advantages of such a contract?
If you’re wondering what benefits a prenuptial agreement will provide you with, we’ve got you covered. Though many people like to frown over premarital contracts, they can be instrumental.
Room to communicate:
Prenuptial agreements provide the couples room to communicate openly. They sit down and toss their fears aside to have a serious conversation. Such a conversation gives couples the space to be remarkably candid about their financial situation, what they can contribute to the marriage and what they hope to get out of it. You understand what mindset your partner is approaching the wedding with and if both of your perspectives match. Thus, you enter your marriage with the same approach.
Safeguard family assets:
You or your spouse might come from a family with important heirlooms. Most families want to keep their heirlooms within the family during events such as divorce. Without a prenuptial agreement, if your marriage comes to an end, the judge will divide property according to what they feel is right. You may lose your family’s treasured asset. But, if you have a signed prenuptial agreement stating that the family heirloom will stay with you in the event of a divorce, then no one can challenge that. Hence, you’ll have the guarantee that your assets are safe.
Avoid unnecessary debt:
You and your spouse might be under different kinds of debt, like student loans or a loan for a car or other property. Without a premarital contract, the judge will divide these up as they see fit. This means you cannot control how much of the debt you have to pay for, and you may receive an unfair share. But, through a prenuptial agreement, you can state that both you and your spouse have separate liabilities and will tend to them individually after a divorce.
Prenuptial agreements are a scary topic to bring up, but once you and your spouse get together to have the conversation, you’ll be all the more thankful. Marriages are unpredictable, and it’s best to always prepare for unfortunate events. With a prenuptial agreement, you can save time during a burdening time such as divorce.
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