Premarital agreements are contracts entered into prior to marriage. They establish the property and financial rights of each spouse in the event of a divorce. While no one wants to think about divorce before they are even married, the sad truth is that today 50% of marriages in the United States end up in divorce.
Premarital agreements can protect one party from taking on debts of the other, protect specific assets of one party, determine the manner in which property is passed on after death, simplify property division after divorce and clarify financial responsibilities of each party. These agreements can be beneficial when it comes to protecting the assets of high profile or wealthy spouses, and also can serve to protect family-owned businesses. Deciding whether a prenuptial agreement is the best course of action to take is something that must be discussed between you and your future spouse. These agreements should not be taken lightly as they are binding agreements that can have consequences in the future.
Some benefits of a prenuptial agreement in the case of divorce include:
• Less future court involvement (which also means lower costs for both parties);
• Makes financial agreements official with spouse;
• Protect family businesses and any associated assets;
• Fewer property conflicts; and
• Avoid shared debt liability.
Just like car insurance, you don’t buy it because you think you are going to crash your car, you have it in case something ever does happen. If the time ever comes when a prenuptial agreement is necessary, it is important to make sure that yours is valid and will be upheld by the court. It is important to consult an experienced attorney while drafting a prenuptial agreement because there are many conditions or factors which could render your agreement invalid. Call Attorney Allen of the Allen Law Group, P.C. at 978-219-9694 to discuss further.