Prenuptial agreements are often thrust into the national spotlight when a high-profile divorce becomes the latest talking point of the 24-hour news cycle. But the value of a prenup is not limited to the rich and famous.
There are plenty of reasons signing a prenup is in the best interests of any couple seeking to get married. Here are a few of the most important reasons you should consider a prenup before tying the knot:
Wealth Disparity Between the Spouses
A prenup is a great way to protect assets, limit the amount that is payable in the event of a divorce and to determine the amount of spousal maintenance (or alimony).
Many people believe that a prenup is only for the wealthy to protect their assets. But the agreement can also be used to make sure the less wealthy spouse is financially protected in the event of divorce.
A prenup also helps the parties begin their marriage with a solid foundation built upon trust and not financial benefit.
Your Partner Has Significant Debt
Spouses entering into a marriage without debt may not want to be saddled with debts incurred by their spouse. A legally valid prenup can specify that debts incurred during the marriage are not the responsibility of the other spouse.
You Own Part of a Business
If you own a business but do not have a prenuptial agreement in place, your spouse could claim an interest in the business. If you have business partners, sometimes they may encourage prenuptial agreements to avoid disputes about the value or increase in profitability during the marriage.
Securing Your Estate Plan
Estate planning is an important way to properly plan for the well-being of your family. A prenup can specify that your spouse is not automatically entitled to an elective share of your estate. This is especially important for any spouse who does not want their spouse to inherit estate assets if they should pass away unexpectedly.
These are just a few of the ways a prenuptial agreement can protect you and your spouse. Contact us at Hallier Stearns PLC to discuss whether a prenuptial agreement is right for you.