It is a common mistake to think that a prenuptial agreement automatically means that two individuals looking to get married don’t expect to stay married. In actuality, a prenuptial agreement is an intelligent choice for any couple, and it certainly does not mean that the marriage won’t work out.
What Is a Prenuptial Agreement?
When it comes to finances in a marriage, a prenuptial agreement takes care of everything that could possibly happen if divorce occurs. Divorce law does exist for all married couples when it comes to dividing assets upon a divorce. But often, one party loses a significant amount of their money or assets with classic divorce law. That’s why there are prenuptial agreements. This is paperwork that outlines exactly how assets will be divided if a divorce occurs. Hopefully, it will never be needed, but if it is, it is there for both parties. Unlike regular divorce law, prenups cater to you and your spouse’s particular financial needs and wants.
Specific Occasions When Getting a Prenup Is Particularly Recommended
Most professionals will advise that every couple who is planning to get married start by filling out a prenuptial agreement. But of course, there are particular occasions in which getting a prenup is definitely recommended. Let’s take a look at some of those occasions.
One partner is much wealthier than the other or earns more
When it comes to assets, if one partner has or makes more than their prospective spouse, it is smart to get a prenup to ensure that the marriage is not taking place for money alone. A prenup keeps these assets safe.
One partner has a lot of debt
If your prospective partner has a lot of debt, that debt could be transferred directly to you if you divorce without a prenup. Make sure that finances are discussed at length before a marriage occurs so that debt is not automatically transferred in the event of the marriage’s end.
This is your second or third marriage
After a first marriage, things tend to change. Your priorities will likely be different, and you may have more financial concerns. Children are often in the mix, and it’s important that everyone gets looked after in the event of a divorce or death. A prenup will make sure that even if you pass away, not all of your assets will go directly to one source. You can dictate where you want your money to go.
Mistaken Beliefs About Prenups
Despite the many benefits, many people view prenups with disdain and won’t even consider entering into them due to the bad light they’re often cast in. Here are five mistaken facts about prenups.
- They’re For Rich People
They’re not just for helping rich people keep their fortunes in a divorce. Prenuptial agreements are for everyone, regardless of their financial status. When you consider the country’s 50% divorce rate, the costs associated with divorce and couples’ increasing financial independence, a prenup makes sense. It determines early on how money will be divided and managed if the marriage ends.
- Prenups Are For Failed Relationships
Many people believe that prenups are only good if a relationship fails. Although they’re helpful in these cases, that’s not all they’re for. They can also help you keep your estate in order. Without such an agreement, your husband or wife can easily interfere in your real estate matters. They’re particularly handy if you have any heirlooms or valuable antiques that you want kept in the family.
- They’re Not Recognized In Court
While courts do sometimes render a prenuptial agreement invalid, this isn’t normally the case. When a prenup is properly planned out and written up by a qualified attorney, and both partners agree to it, the vast majority of courts will uphold it.
- Prenups Are For Men
Prenups have a bad reputation as tools used by men to cheat their wives out of any financial and marital rights. While this has been done in the past, these agreements are no longer upheld in court. Besides, prenups can be useful to women, too, by providing an ideal way to lay out what both partners expect from each other.
- They’re Costly
A prenuptial agreement may seem pricey, but when you consider how much a divorce can cost, the price tag suddenly isn’t so high after all. Consider it a form of insurance. You pay for it once and hope that you’ll never need it. However, on the off chance that something does happen, it can protect you from financial ruin.
Consider hiring an experienced attorney to help with your prenup. If you have any questions regarding prenuptial agreements, please contact the family lawyers at The Law Office of Ronald Kossack today. We proudly serve Tempe and the surrounding area.