A prenuptial agreement is a contract entered into prior to marriage and is designed to protect both parties. This agreement sets forth the way in which marital property will be divided in the event that the parties get divorced. It may also include the party’s financial obligations to one another, as well as any other requirements the parties wish to include.
Who should have a prenuptial agreement?
- Individuals with assets and money – A prenuptial agreement will ensure that money or property that is solely owned will not become marital property.
- Those who expect to inherit money or assets in the future – A prenuptial agreement will set forth guidelines establishing that any property inherited by one spouse will remain his or her sole property, which helps avoid any conflicts over an inheritance in the future.
- Those who have student loans or other debt – Any debts accumulated during the course of the marriage are shared between both parties unless otherwise agreed upon before the marriage and in a written agreement. Having a prenuptial agreement prevents one spouse from being responsible for another’s debt.
- Individuals who are a business owner – Unless otherwise stated, one spouse may be entitled to another spouse’s business in the event that a divorce occurs.
- If a person has significant earning potential – When one spouse has the potential to make a lucrative salary in accordance with his or her field, a prenuptial agreement will protect them in the event of divorce.
- Those who have children from a prior relationship – A prenuptial agreement can safeguard assets or money for children from a previous relationship.
With the United States having a divorce rate of approximately 40 to 50 percent, a prenuptial agreement safeguards each spouse’s rights, the rights of children from a prior marriage, and makes a separation or divorce less complicated. With that being said, it is important to speak with an experienced and knowledgeable lawyer to negotiate and draft the terms and conditions of a prenuptial agreement.
If you are planning to tie the knot and are considering a prenuptial agreement, the experienced Babylon divorce lawyers at Larry McCord & Associates, LLC can guide you through the process. For more information or to schedule a consultation, contact our Babylon divorce lawyers at (631) 643-3084.