Celebrities do it all the time–they protect their assets with prenuptial agreements, and keep their wealth even when a marriage ends in divorce. However, prenups aren’t just for the famous. A prenup is a legal contract signed before a marriage takes place, and it sets forth what will happen if the marriage ends. These agreements can be beneficial for anyone who wants to protect their income and their assets. Below are some reasons for the average person to consider signing a prenuptial agreement.
1. It helps you avoid court battles. One of the most significant advantages of a prenup is to be able to settle disputes away from the courtroom. They can help you save money and time, and they can also help you keep divorce details private. If there are children in the marriage, a prenup can curtail the legal and financial wrangling that usually accompanies these cases.
2. It provides for a division of marital assets. Prenuptial agreements help you decide in advance how marital assets will be divided in the event of a divorce. Prenups are especially beneficial in states like California, where community property laws apply.
3. It can protect you from your spouse’s premarital debts. These agreements can set aside existing debts so that the other spouse is not responsible when divorce occurs, and they also offer protection against debt accrued by the other spouse during a marriage.
4. They can protect assets for children from previous marriages. For second, third or subsequent marriages, especially in cases where children are involved, prenups can protect their future assets.
5. Prenups can incentivize or require behaviors. Prenuptial agreements sometimes go beyond the financial aspects of married life, and set forth rules on behavior for a spouse. For instance, there could be a provision requiring that a spouse abstain from using drugs or consuming alcohol. Some prenups include infidelity clauses, but these non-financial clauses aren’t always enforceable.
Every state’s laws allow for prenups, but laws vary widely. If you’re interested in drawing up a prenuptial agreement, you should know your state’s laws and consult with a Divorce Lawyer Albuquerque NM to learn your options.
