Marriage is the blending of two lives and two families. With that union comes the union of assets and wealth. If you’re getting married soon, you might be wondering about a prenuptial marital settlement agreement or a prenuptial agreement. What exactly is a prenup and who should have one?
What is a Prenuptial Agreement?
A prenuptial marital settlement agreement is a legal contract that is drawn up prior to marriage. Prenuptial agreements are signed by both parties entering into the marriage. The agreement will detail exactly what will happen in regards to finances and assets during the course of a marriage and in the event that your marriage ends.
There are other types of agreements that can be made once you are already married, but prior to the wedding, this will be your only opportunity to make these decisions before being legally bound to one another.
What Does a Prenuptial Agreement Cover?
Your prenuptial agreement will be personal to you and your spouse depending on what you want to be covered. The most commonly covered agreements have to do with assets, finances, businesses and property. The only way to decide what you need to include in your agreement is to sit down with your significant other and a lawyer to help you iron out the details and draw up the contract.
Do I Need a Prenuptial Agreement?
A common misconception is that prenuptial agreements are only for those with vast wealth. In reality, a prenuptial agreement is useful and can be utilized by anyone, regardless of their wealth status. While it is highly recommended that you have a prenuptial agreement if you do have a lot of assets, there can be a number of reasons to get one, including but not limited to:
You wish to keep your finances separate
To establish property rights
Protect one spouse from the others debts
Protect family property or estates
Avoid excessive court proceedings in the case of divorce
If one of you owns a business
If you have children or plan to have children
Does Having a Prenuptial Agreement Mean Our Marriage is Doomed?
Absolutely not! Many people think that a prenuptial agreement means you plan to get a divorce. Prenuptial agreements are just a part of life planning and a form of insurance. It allows for everything to be settled to begin a new season properly secured. Prenuptial agreements are also useful even for those who stay together their entire lives.