Why a Prenuptial Agreement is Important
Why a Prenuptial Agreement is Important
It may feel counterintuitive to draft a document detailing how you and your future spouse will split finances in case of a divorce. However, a prenuptial agreement will protect both of you from more than money disputes. It can also help you strengthen your relationship before you marry since you will have to discuss complex topics and work together to agree on your future.
Plus, with a significant number of marriages ending in divorce, it is more realistic to plan for the possibility of a divorce rather than to pretend it could never happen.
What is a Prenuptial Agreement?
A prenuptial agreement, also known as a prenup, is essentially a list of rules about dividing assets if a couple gets divorced. Since the word ‘nuptial’ means marriage, prenuptial means creating a list of rules agreed to before marriage. A prenuptial agreement is legally binding and upheld by the courts.
When getting a prenuptial agreement, both partners need to be voluntarily present. Neither of the partners is tricked into giving something up. Each person should draft the prenuptial agreement with their own lawyer to ensure the process is as fair as possible.
What Are the Benefits of a Prenuptial Agreement?
Open Communication
Finances are a significant part of any married couple’s relationship. It is often the reason why many couples get divorced—before getting married, discussing what each person brings to the relationship is always a good idea. Discussing a prenuptial agreement is an excellent way to initiate an honest conversation about what assets and liabilities will be shared.
Drafting a prenup with your partner will help you understand one another’s expectations of ownership and finance. Questions such as who would get the house if they were to divorce are essential topics of discussion that may not come up if the couple did not have a prenuptial agreement. Setting expectations and having a genuine conversation about complex issues will help strengthen your relationship and give your marriage a proper foundation.
Fairness in Division of Assets
Unless both partners enter the relationship with the same amount of assets, one partner may leave the marriage with significantly less money while the other leaves with more. It is easier to leave the relationship with a fair division of assets with a prenuptial agreement.
When couples fight over assets in court during a divorce, they both try to screw the other person out of money, especially if the relationship ends poorly. A prenuptial agreement is generally fairer since both partners will be going into the agreement amicably.
Protect You From Debt
Once a couple gets married, all incurred debts belong to both partners. If one person racks up a credit card bill before getting divorced, both partners could potentially be responsible for the debt. Debt repayment can be discussed in a prenuptial agreement, protecting the debt-free spouse from an unfair financial burden.
What Can Be Included in the Prenuptial Agreement?
A prenuptial agreement can consist of property, spousal support, alimony, debts, and other assets. A prenuptial agreement can include property, spousal support, alimony, debts, and other assets such as family heirlooms. Child support will be determined after divorce, either in mediation or court.
Who Might Need a Prenup?
Many people are under the impression that prenuptial agreements are only for the rich and famous. A prenuptial agreement benefits everyone since there are always assets you want to protect. People who may wish to consider a prenuptial agreement include those who come into the marriage with assets, business owners, and single parents. These people would benefit from a prenup since they tend to have valuable assets that they achieved independently.
In caucus, the mediator will put a proposed settlement on the table. Then, they will ask each side to attempt to amend the settlement until an agreement has been made. Depending on the success of this, “caucusing” can occur.
The bargaining stage can take a day or a few weeks, depending on how much you and your spouse disagree.
If you need a Family Law Mediation or Marital Contract Attorney in Tucson, Arizona, you should contact ELCV LAW by filling out a request form at www.elcvlaw.com or call us at 520-795-2235. Take control of your future to learn how you can benefit from a prenuptial agreement. Contact Erika L. Cossitt Volpiano, P.C. for a consultation, today.
Disclaimer: The content in this article is for informational purposes only and should not take the place of actual legal advice. Not all circumstances are the same, and it is suggested that you should seek legal counsel if you need assistance in any of these areas.
