Are you thinking about getting married and want to protect assets and property? Are you considering how to protect yourself from assuming potential debts of the other person? If so, your answer might be a prenuptial agreement.
Prenuptial agreement: Definition and meaning
What is a prenup or prenuptial agreement? Prenuptial agreements (also known as prenups) are contracts between two people before they tie the knot (get married). Think of them as a mechanism to potentially avoid property, finances, assets, and debts if you end up in divorce by avoiding common state law entitlements your spouse would otherwise be entitled to…that is, if the agreement is appropriately drafted. So if you were getting excited about having the ability to circumvent state laws and fairness, don’t get too excited. Courts still analyze these agreements to ensure it is clear, understandable and justifiable. Thus, if a judge decides that a prenup is unfair, they have the ability to set it aside.