Entering into marriage is a joyful occasion filled with promises of love and commitment. While discussing the possibility of a prenuptial agreement might not seem as romantic as choosing wedding decorations or planning the honeymoon, it is a practical step for many couples. Prenups aren’t just about protecting assets—they can cover a wide range of issues that can arise during a marriage or in the event of divorce. Let’s explore what a prenup can cover and why it’s worth considering.
1. Asset Division: One of the primary purposes of a prenuptial agreement is to outline how assets will be divided in the event of divorce. This can include specifying which assets are considered separate property and which are considered marital or community property. It can also establish how property acquired during the marriage will be divided, providing clarity and avoiding disputes down the road, which in turn can also save you an arm and a leg in potential attorney’s fees.
2. Debt Allocation: In addition to assets, a prenup can address how debts will be allocated between spouses. This can include debts incurred before the marriage as well as those acquired during the marriage. By establishing a clear plan for debt allocation, couples can avoid surprises and ensure that both parties are protected. This can be especially true if one spouse has a business, and the other spouse wants to be protected from the debts and liabilities associated with the business.
3. Spousal Support: A prenuptial agreement can also address the issue of spousal support, also known as alimony or maintenance. This can include specifying whether spousal support will be paid, how much will be paid, and for how long. By establishing these terms in advance, couples can avoid contentious disputes over spousal support in the event of divorce. This is highly recommended if one spouse plans on staying at home with any children to ensure that this spouse will have some financial protection in the event of a divorce. This can afford the spouse some time to go to school to get educated or brush up on some skills in order to apply for jobs.
4. Inheritance Rights: For couples with children from previous relationships or significant family assets, a prenup can address inheritance rights. This can include specifying how assets will be distributed upon death and ensuring that children or other beneficiaries are protected.
5. Business Interests: If one or both spouses own a business, a prenup can address how business interests will be handled in the event of divorce. This can include establishing the value of the business, determining whether the business will be considered separate or marital property, and outlining any provisions for the sale or transfer of the business.
6. Financial Responsibilities: A prenup can also address financial responsibilities during the marriage, such as how household expenses will be divided and who will be responsible for certain financial obligations. This can provide clarity and prevent misunderstandings about financial expectations.
7. Dispute Resolution: A prenuptial agreement can include provisions for dispute resolution, such as mediation or arbitration. This can provide a framework for resolving disputes outside of court, saving time, money, and stress for both parties. Coming to an agreement outside of Court is usually much less expensive than going to Court.
By addressing these issues in advance, couples can protect their assets, clarify financial expectations, establish a framework for resolving disputes, and save a ton of money in attorney’s fees you would not believe. Most attorneys would much rather help you save the stress and attorney’s fees by drafting a prenup for you as opposed to representing you in a lengthy, contentious, and expensive divorce.
If you need assistance drafting your prenup, contact the Law Offices of Amber Shemesh, PC.
By: Maryam Afzal, Associate Attorney
