Think you and your partner will never split up? While it’s possible you’ve found endless love with each other’s company, it may still be a wise decision to enter a prenup in case any unfortunate events take place in the future. Before discussing the reasons why you should enter a prenup, let’s first tackle what the term refers to.
What is a Prenup?
In a nutshell, a prenuptial agreement is a legal contract engaged by a couple before officially getting married. The contract offers for an agreed upon allocation of properties if the marriage escalates to annulment. Though a prenup can also be sought before the couple gets married, a postnuptial agreement is also available for couples who’ve already been married. Domestic couples can also apply for a cohabilitation agreement if desired. Now, why should couples opt for a prenuptial agreement?
5 Reasons to Get a Prenuptial Agreement
Prenups aren’t bad signs of a future divorce. It isn’t meant to diminish hope for never ending love. While trust, love, compatibility and other factors might be holding your relationship perfectly intact today, this may not be the case at all after 10 or 20 years. In fact, in today’s world, divorces and annulments are commonplace and an accepted practice of society. To avoid disputes and to protect the well-being of your future children, a prenuptial agreement is certainly a useful contract to opt for. To help you realize the value of a prenuptial agreement, below are five reasons to secure the contract.
Reason #1 – To protect your assets
If one of the couple has properties like stocks, bonds, second home, small business, car or inheritances, a prenup can safeguard such assets from being divided to the other partner during a divorce. This will also guarantee that the spouse will not risk losing his/her business amid the proceedings.
Reason #2 – Security against your partner’s debts
If one of the couple has an exuberance of debt, a prenup will shield the other one from being held accountable for payments of the debt. The prenup lays out who is liable for paying the outstanding balance before the marriage.
Reason #3 – To receive support thereafter the annulment
If one of the couple is forced to quit their work to take care of the kids, she will be at a financial drawback if the marriage were to end in a divorce. A prenup will calculate how much financial aid the unemployed spouse and kids are eligible to receive once the marriage officially comes to a conclusion.
Reason #4 – Property partitions
To add up to laying out how financial properties will be dispersed, prenups also decide how assets will be shared among both parties.
Reason #5 – Protecting the rights of legitimate children in the future
If one spouse has a considerable fortune and then gets married and have kids again, his/her first family will retain the rights to what was agreed upon on the contract, whether it involves property or business inheritances.
While signing prenuptial agreement forms is not the most romantic thing to do together before your big day, it is an important part of securing your future.