A Prenup is a useful tool in your estate planning. Forbes’ recent article entitled “Prenuptial Agreement: What Is A Prenup & How Do I Get One?” explains that a prenup contemplates the end of the marriage, so the couple can divide assets with an objective mindset. A prenup can even help protect a business.
Prenups allow you to determine if alimony will be due if the marriage ends, as well as the amount and terms of those payments. A prenup can also say what kind of bequests you leave to each other in your will. It can also be good for couples trying to keep separate significant pieces of personal property, including future inheritances and other anticipated income. This is common for couples with a significant age or wealth difference and among older or remarrying couples.
Prenups Aren’t Just for the Very Wealthy. A Prenup can be a useful tool for almost everyone’s estate planning.
Protect Family Heirlooms. If you have a family heirloom and want to make sure that if your marriage ends, you’ll get to keep it, you can draft a prenuptial agreement that states the family heirloom is yours.
Pass Property to Children from Prior Marriages. A prenup can be used to establish property rights for second marriages. If you have children from a previous marriage, you can protect their interests in your assets and property.
Clarify Financial Rights. Prenups can help you decide now how assets will be split up instead of waiting until divorce proceedings. While divorce may never come, determining the financial distribution now saves time and headache.
Debt Protection. Prenups also provide debt protection. Some people enter a marriage with substantial financial debts or student loan debt. For couples in this situation, they can sign a prenup and clarify that those debts remain the separate responsibility of the spouse who incurred them. They can also decide how debts incurred during the marriage will be handled.
Avoid Emotional Arguments. The end of a marriage and divorce is emotional. It can be an overwhelming and upsetting process. When you’re negotiating with your spouse about assets, tempers can cloud your judgment about asset distribution. Contemplating these items with a clearer head is better for all.
Take time to consider how you want to craft a prenup. It can have a significant impact on your assets and your goals for your heirs. If you would like to read more about prenups and other forms of asset protection, please visit our previous posts.
Reference: Forbes (Oct. 24, 2022) “Prenuptial Agreement: What Is A Prenup & How Do I Get One?”
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