Exploring The Benefits Of Prenuptial Agreements

Whether you believe it to be unromantic or have fallen victim to the misconception that it suggests you have doubts about your marriage, creating a prenuptial agreement is something that often gets a bad rap. However, in reality, a prenup isn’t meant to cast a cloud of distrust on your relationship; there are actually many benefits of creating a prenuptial agreement that can take some of the stress off your shoulders as you get closer to “I do.”

What is a prenuptial agreement exactly? It’s a legally binding contract signed by two people before entering into a marriage which specifies how their assets and property will be managed in the event of death or divorce. Despite the social stigma that surrounds the topic, there are numerous ways that a prenup can benefit you and your spouse. Let’s explore some of these benefits!

1. Clarifying Financial Responsibilities

One of the greatest benefits of creating a prenuptial agreement is that the document allows you and your future spouse to set expectations and clarify financial responsibilities before you head down the aisle.

When you and your partner decide to marry, you’re intertwining your lives in several different ways, one of which is financially. A prenup gives you the opportunity to express how you plan to handle finances, like your savings, investments, expenses, and more during (and possibly after) your marriage, which in the long run can prevent conflict and disputes from occurring, rather than leaving financial matters to be discussed after they’ve already become a problem. This can also help foster an environment of honesty as you head into your marriage, which is another benefit in and of itself.

2. Protecting Personal Assets

Creating a prenuptial agreement is an excellent way to protect your personal assets. If divorce occurs, a judge will decipher what is separate property and what is marital property in order to make divisions. Generally, marital property is anything earned or acquired during your marriage, and it’s usually divided according to state laws, unless you and your spouse define how you’d like for it to be split in your prenuptial agreement.

This can prevent you from engaging in a nasty, drawn-out legal battle with one another. A prenup can be especially beneficial in safeguarding separate property, which is property acquired before entering into marriage, like family heirlooms or an inheritance. Both parties can specify what assets belong to them and how they should be distributed in the event that a divorce occurs. Making an agreement now can spare you from disagreements in the future.

In addition to protecting personal assets, a prenup can also protect individuals from their spouse's debts. If your partner brought debts like student loans, credit card debt, medical bills, or other costs into the marriage, your prenup can outline how those debts should be dispersed in the event of separation or divorce so that you don’t suffer financially.

3. Defining Spousal Support

In many marriages, one spouse is financially dependent upon the other. This is usually due to personal preference, career or educational opportunities, or income differences. Let’s say you and your spouse do divorce, and you’re the financially dependent party. A prenuptial agreement can outline provisions for spousal support so that you don’t face financial hardships after divorce. Likewise, if you’re the spouse that the other is financially dependent upon, a prenup can ensure fairness so that you aren’t being taken advantage of financially. It should be noted that while spousal support can be determined within a prenup, child support cannot.

4. Ensuring Family Business Continuity

If you’re a business owner, protecting the assets that belong to your business is pivotal. Even though you aren’t planning for a divorce, you don’t want to have to dip into business funds in order to settle one. A prenuptial agreement can help separate your business assets from your marital assets so that you can avoid disputes or claims from your partner in the event that you get divorced. Your prenup can also outline specific provisions for the management and ownership of your business if divorce occurs.

5. Facilitating Smooth Divorce Proceedings

While it isn’t the case for every couple, it’s no secret that a divorce can get rather contentious, especially when it comes to dividing up assets and property. Even when a couple is on amicable terms, it can be difficult to come to an agreement on who gets what. Creating a prenuptial agreement is one way to skip out on the drama all together as you’ve already come to an agreement on what is and isn’t marital property. This means that divorce (if it ever occurs) will be a smooth process.

How To Know If A Prenup Is Right For You

Headed to the chapel soon? Here are some ways to know if a prenuptial agreement is right for you:

• If you want to protect your assets, like inheritance or family heirlooms
• If you want to protect yourself from your spouse’s debts
• If you want to secure spousal support
• If you want to prevent future conflict and disputes
• If you want to ensure a smooth divorce (if it ever occurs)
• If you want to protect your business
• And more

How New Leaf Family Can Help You

If your big day is approaching, we want to encourage you to at least consider adding a prenuptial agreement to your list of to-dos. Even if you’re hesitant, our experienced team of attorneys can help you determine if it’s the right move for you and your partner. If it is, we are happy to assist you with every step of the process, ensuring that your goals for your marriage align with the provisions of your premarital agreement. We understand that this is one of the busiest times of your life, but we will do everything we can to take the burden off your shoulders and make creating a prenuptial agreement as smooth and stress-free as possible. Call New Leaf Family today to speak with a member of our team and learn more!

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