Many big decisions come with getting engaged. Planning for marriage can be exciting and romantic, although the thought of adding a prenuptial agreement may not stoke your passion, they can help you now and in the future. Prenuptial agreements are useful if a marriage ends or if someone passes away. Couples also benefit from these contracts while creating a long-term financial strategy for their future together.
A prenuptial agreement creates a permanent contract between parties before their marriage begins. This agreement details what assets belong to whom. Make sure to include the following sections in your prenuptial agreement.
5 Necessary Sections Your Prenuptial Agreement Needs
Separate Personal Debt
Total up any debt including personal, auto, credit card, and student loans. You can also add any planned private future debt for after the marriage takes place. Though you may work on these together, you need to agree where the debt originated. If your marriage ends, a prenuptial agreement will protect you from spending years paying off debt that did not belong to you.
All Business Assets
No matter what your level of involvement in a business or investment, you should make a note of it in your prenuptial agreement. Any assets you acquire after marriage will legally be considered shared by default. If you plan to note financial interests as separate property, consider adding a clause about increases in its value after marriage.
Adding children to a prenuptial agreement is a definite must. However, many people forget to add their pets when drafting an agreement. Include a plan for any previously owned or future pets. Make sure to add notes about who will be responsible for the pets care and financial needs.
An unfortunate reality is that money is often an issue that damages relationships. Prenuptial agreements only cover specific future cases. Gifts exchanged between members of a married couple count as shared assets by default. A prenuptial agreement can stipulate that gifts become the personal property of an individual.
A ring often goes with engagement and marriage. An exchange of rings is a traditional ritual taking place before the marriage. A wedding ring is a gift. When you get to the prenuptial agreement, make sure to note that your rings are personal property.
Have you recently become engaged? The team at Aldrich Legal Services can help you plan for your financial future by helping you set up a prenuptial agreement. At Aldrich Legal Services, our knowledgeable attorneys will address any family law issues you may experience.