Five reasons you may want a prenuptial agreement
May 7 2015 - Posted by On Behalf of the Lincoln Law Firm, PPLC, in Prenuptial Agreement, Property Division, Tagged in Divorce, Prenuptial Agreement, Property Division
Newly engaged couples in Houston are usually giddy with excitement over their upcoming marriage. Along with planning the ceremony, reception, what everyone’s going to wear, and where the honeymoon will be, couples should also sit down and focus on financial matters. Financial discord is one of the top reasons couples get divorced, so sorting out important matters before marriage can help. A prenuptial agreement is one way that couples can settle important financial details and ensure a layer of protection for themselves and their marriage.
One situation where a prenuptial agreement may be right is when one person owns his or her own business. A business owner may want to specify what happens to the business in the event of a divorce, or he or she can use a prenuptial agreement to protect intellectual property.
Another good reason to have a prenuptial agreement is that it can protect certain assets and wealth that a person may already have. If an individual has a big inheritance, for example, they may want to ensure that a divorce does not affect it. Such an agreement can also protect high-value property, including art work, collectibles, and other family heirlooms that could be affected during the often-times stressful property division process seen in many divorces.
A prenuptial agreement can also be important if there are children from a previous relationship. It can specify assets that go to the children and to your spouse and help avoid confusion. A prenup is also helpful if one spouse gives up a career to take care of kids or supports their spouse while they are in graduate school. The prenup can specify that the person who is giving something up will receive some sort of financial compensation if the marriage ends. In other words, alimony can be addressed prior to marriage.
Finally, a prenuptial agreement may be beneficial if one party has a lot of debt going into the marriage. Student loans and credit cards can add up to hundreds of thousands of dollars of debt. A prenuptial agreement can clarify who the debt belongs to before marriage and that they will continue to be accountable should the marriage dissolve.
Source: Cheat Sheet, “5 reasons why you might want a prenup“, Megan Elliott, Apr. 25, 2015