Are you getting married? Do you wish to protect your assets and property? Are you wondering how to protect yourself from assuming potential debts of your future spouse? If yes, a prenuptial agreement can help.
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).
An agreement of this nature can determine what will happen to your (and your spouse’s) assets and income if you both decide to part ways in the future (or even in case of death).
Prenuptial agreements are widely popular these days for a number of reasons. One reason could be that people are highly focused on their careers which could delay their marriage. By the time they marry, both partners have accumulated enough wealth and financial assets that call for protection. Prenuptial agreements address this issue. Plus, they are also especially valuable when one partner has children from a previous marriage. Such an agreement makes sure a spouse’s separate property goes to their own children.
Think of a prenup agreement 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.
This section consists of detailed information about prenuptial agreements, laws around it and how to get one.