If you are about to get married, it is important to be aware of the issues that may arise in the event of a divorce. One of them is the division of property. Thankfully, that’s where prenuptial agreements come in.
What is a prenuptial agreement?
A prenuptial agreement, also known as a “prenup,” is a contract entered into by two people before they get married. The purpose of the agreement is to define how their assets will be divided in the event of a divorce.
Both you and your future spouse will need to disclose all of your assets and debts. You’ll also need to agree on how you want to handle property division, alimony, and other financial matters in the event of a divorce.
Who needs a prenuptial agreement?
You may think that prenuptial agreements are only for rich people, but that’s not always the case. If you own your own business, have significant debt or want to protect your inheritance, a prenup can be a good idea.
Likewise, if you’re getting married later in life or have been through a divorce before, you may also want to consider a prenup. Of course, this aspect of family law is not right for everyone. If you don’t have many assets or debts or if you’re confident that you and your spouse will always be on the same page financially, then a prenup may not be necessary.
If you and your spouse don’t sign a prenup before getting married, all of your assets and debts may be subject to state laws on property division. This means that a judge will have the final say on how your assets are divided in the event of a divorce. That’s why it’s important to consider this agreement while making sure you understand your state’s laws on property division before you get married.