5 Reasons You Should Sign a Prenuptial Agreement
The primary role of a prenuptial agreement is to help you and your partner define property rights before marriage. Contrary to popular myths, signing a prenup does not equate to planning to fail in your marriage. Instead, a prenup helps you protect your interests and those of your partner as you prepare to marry, and should you divorce or separate, it will continue to protect you. Below are five reasons you need to discuss and sign a prenup with your soon-to-be husband or wife.
1. Avoid Lengthy Court Sessions
A divorce is a challenging and eventful process for every couple. More often than not, participants are stressed throughout the process. This significantly affects their ability to develop reasonable strategies to settle their marriage.
A prenuptial agreement will save you the agony of fighting over assets. Additionally, it will significantly reduce the divorce costs since you do not require a property settlement agreement or a judge's decision when dividing property and determining alimony. The contract also reduces the time it takes to settle the marriage.
2. Communicate Openly
No couple enters marriage with the anticipation of a divorce. All couples look forward to a happily ever after until death does them part. However, the reality is, divorce incidences have been increasing in recent years. Therefore, before getting married, you and your partner need to discuss divorce as an eventuality in your relationship.
A prenuptial agreement discussion allows you to be open and vulnerable to each other. Besides, it prepares you for other difficult conversations you will engage in during the marriage.
3. Keep Your Assets Separate
A prenup will define whether your assets, such as a house and business, belong to you or the marital estate. For example, you could opt to exempt your inheritance or property acquired in previous marriages from the marital estate.
Typically, the agreement discourages people from marrying due to the assets that their partners own. From the onset, each party knows their entitlement should the marriage end up in a divorce.
4. Develop a Property Distribution Formula
Once you get into marriage, you will acquire property such as houses, cars, and businesses together. In the event of a divorce, State courts that have community property laws will divide your assets equally between the partners.
Suppose your state has an equitable distribution law. Your marital property will be divided in the fairest way possible, considering factors such as individual financial contribution towards the marriage estate and post-divorce needs. Obviously, you do not want to leave the distribution of your wealth at the dispensation of the court.
With a prenuptial agreement, you and your partner will know how to divide your estate between each other in the most amicable way. You don't need to fight over who gets to keep the family pet.
5. Protect Yourself From Debt
Debts are a reality of life. Before you marry your partner, you need to be aware of each other's financial backgrounds. A prenuptial agreement will limit exposure to your partner's debt. That way, you can protect your financial reserves and assets from creditors who might target your marital assets as your partner's debt payment.
A prenuptial agreement is a sure way to guard your interests and those of your spouse in case of a divorce. At Law Offices of Jamie L. Hazlett & Associates, we know that you do not purposely plan to fail by signing a prenup. Contact us today and let us help you come up with an agreement that does not only protect your interests in marriage but is also enforceable in a court of law. Call us today.