One of the first blogs we published on our website was about changing how you view prenuptial agreements. Although we encourage you to go back and read it, it centers on breaking down some of the myths surrounding them. People envision the monied spouse handing their fiancé a document and asking them to sign it. In reality, each side has legal counsel, and the process is designed to be collaborative.
This post will focus on the financial benefits of having a prenuptial agreement. Getting married changes your financial future, and prenuptial agreements are a means to protect your assets. Think of a prenuptial agreement as a contract because that is what they are. Two people come to an agreement regarding how their assets will be divided if the marriage results in divorce. This isn't pessimistic as much as it is realistic. In the US, 41% of first marriages end this way—and the numbers increase for second and third marriages. In this way, they can offer a degree of certainty for an uncertain future.
The Benefits of a Prenuptial Agreement
Like any contractual agreement, prenuptial agreements require careful consideration, and it is fundamentally essential to speak with an experienced attorney while drafting one. Sometimes, signing a premarital agreement without legal counsel will make them unenforceable. However, your attorney will assess your assets and help you protect them. Although many people quickly think about their home, couples can possess substantial assets like a business or a retirement fund. Prenuptial agreements ensure that these assets are not only accounted for but can be appropriately divided.
Ironically, people assume prenuptial agreements will create conflict, but they exist to avoid it. Divorce proceedings can be contentious, mainly because of how easily disputes can arise over the division of assets. Prenuptial agreements are an opportunity to address the division of assets to minimize conflict later proactively. By having the conversation now, you are laying the groundwork for eliminating contested arguments during a highly emotional time.
Additionally, you can also consider the financial needs of your children. You and your attorney can create provisions regarding setting aside money for education expenses or even their future care. If you or your spouse have children from a previous marriage, prenuptial agreements can address their financial needs too.
Financial Reasons to Get a Prenuptial Agreement
When two people have a significant asset disparity, having a prenuptial agreement can facilitate a fair and equal distribution of them. This can be ideal for both spouses. These agreements can ensure that neither person is disproportionately affected by the financial fallout of the divorce.
Whereas we have mainly focused on assets, we also have to consider debts. One or both people will likely have existing debts before entering into a marriage. A prenuptial agreement can outline how these obligations will be handled during and after the marriage.
Work with Hamilton Law
Before you get married, you and your partner must have an honest conversation about your finances. Having a prenuptial agreement is an excellent way to make that happen. The team at Hamilton Law is highly experienced with drafting prenuptial agreements and will help you avoid potential conflicts in the future. To speak with an attorney about creating yours, contact our office today to schedule your free consultation.