A prenuptial agreement is not only for the wealthy people in society, like Hollywood celebrities and the like but also for any couple that brings personal assets, property, debts or children from a former relationship into the marriage.
This agreement is beneficial because it can establish the monetary rights and responsibilities of both parties during the time they are married, and the division of assets in the event of divorce or sudden demise. Prenuptial agreements protect the parties from each other’s financial debts.
Importance of a Prenup
The reality is that 50% of marriages end in divorce. Prenups are contracts signed by marital partners in contemplation of a future divorce or death of one spouse.
- The whole idea behind this agreement is to reduce legal uncertainties if the marriage comes to an end. With a prenuptial agreement, one’s rights remain the same even if there are changes made in the law. Therefore, parties involved in this contract don’t have to worry about law changes at all.
- Prenups cover a variety of issues, like business or personal assets, spousal support and financial liabilities, or they may be limited to certain assets, like ownership of a personal enterprise.
- These agreements are especially advantageous to those parties who enter a marriage with children from a previous relationship, as it can clarify financial responsibilities regarding the costs of bringing up a child if a divorce or death happens. This also applies when one of the parties is taking care of his/her aging parent.
- In addition to those benefits, if you are the owner of a company, a prenup can help guard your business and your loved one.
Approaching Your Significant Other
Indeed, the most challenging part of a prenup is telling the person you’re engaged to about it. Emotions of hurt may occur. However, looking at the situation differently, as a couple you are planning in advance to see which personal assets or liabilities you are entering into the marriage with, and creating a financial strategy that’s advantageous to the both of you.
Younger couples may want to consider a prenup concerning debts that are brought into the relationship like student loans.
If you need advice on prenuptial agreements, contact the team at Aldrich Legal Services today. At the Plymouth and Ann Arbor law firm of Aldrich Legal Services, our attorneys have the skill and experience you need to address all family law issues that may arise.