If you are getting married, there is a good chance that you will be discussing the idea of a prenuptial agreement with your partner. A prenup can be a valuable tool for protecting your assets in the event of a divorce. However, it is important to understand what a prenup can and cannot do.
What is a prenuptial agreement?
A prenuptial agreement, also known as a premarital agreement or simply a “prenup,” is a legal contract entered into by two people before they get married. The purpose of the agreement is to define each person’s financial rights and responsibilities in the event of a divorce.
What are the benefits of a prenup?
There are several potential benefits to having a prenuptial agreement. First, it can provide clarity and peace of mind for both spouses regarding their finances. For instance, if one spouse owns a business or has significant assets, a prenup can help ensure that those assets are protected in the event of a divorce; you can use it to ensure that your spouse does not have any claim to it in the event of a divorce. Additionally, a prenup can help avoid costly and time-consuming litigation in the event of a divorce.
Finally, any family law attorney will tell you that a prenup can also protect your inheritance rights. If you are expecting to inherit property from your family, a prenup can ensure that your spouse does not have any claim to it.
What can it not do?
It is important to understand that a prenuptial agreement cannot address all potential issues in the event of a divorce. For instance, it cannot determine child custody or visitation arrangements. Additionally, a prenup cannot include personal preferences, such as who should take out the trash. Finally, a prenup cannot be used to commit criminal acts, such as hiding assets from your spouse.
If you’ve not created a prenuptial agreement, it may not be too late to create one. Speak to your partner about the possibility of creating one to protect your interests.