For many years, people have signed prenups before getting married to their partners. Due to the circumstances under which a prenuptial agreement is implemented, people attribute negative meanings to it. Despite the negativity, some couples continue to sign them, and it seems to work out for them if the marriage ends in a divorce. According to statistics, about 40% of couples between 18 and 34 have signed one. Therefore, if you are considering it, here are some reasons a prenup might be a good addition to your divorce checklist.
- There is more at stake for one partner
This is one of the main reasons some couples opt for a prenuptial. Usually, when one partner holds a lot more tangible wealth than the other, a prenuptial is considered an asset protection system. Perhaps, wealth is why people often think a prenuptial agreement is for the rich in society. However, it isn’t necessarily so. In many instances, people who inherit high-value assets from parents or grandparents want to avoid losing these things.
Therefore, before they get married, the subject of a prenuptial agreement comes up. Indeed, it is up to the other partner to decide whether to sign the document or not. Sometimes, it has nothing to do with tangible assets. One partner might earn a lot more income than the other. In that case, they may be unwilling to deal with any unagreeable alimony should the marriage end on the rocks. However, with a prenup, they will be willing to settle a previously agreed-upon amount for the divorced partner. This way, both parties go their separate ways without protracted divorce proceedings. Fortunately, divorce lawyers can help both parties maneuver this rough terrain.
- For proper distribution of assets in a divorce
Divorce proceedings can get ugly when it comes to the distribution of assets. However, a prenuptial can come in handy. The agreement spelled out may mention how assets should be distributed in the event of a divorce. In this case, the terms indicated in the prenup can supersede state laws. The advantage of this is that the prenuptial agreement would have set forth a distribution method agreed upon by the parties involved.
This can be a time and cost-saving strategy for the divorce parties. The last thing you want to be embroiled in is a protracted court case because former spouses cannot agree on asset distribution. More importantly, a prenup also details what must happen if one party dies during the marriage or in the middle of a divorce.
- Protecting children from a prior marriage
Children from a previous marriage can be disadvantaged in property distribution when divorce happens. Remember that the spouse from a current marriage might leave with significant wealth in the event of a divorce. If that happens, children, you had from a previous relationship might be left with nothing to secure their financial future. As it is, you can change that likely narrative by taking matters into your hands. You have a direct responsibility toward your children’s welfare.
Whether biological or legally adopted, they have a right to a fair distribution of property. This is particularly important when your kids are minors and their rights are protected under the laws of your state. On the other hand, if your children are adults and you have no intention of passing any property to them, that will be a different story altogether. If you fail to sign a prenup in your next marriage and a divorce happens, adult children can sue for their share.