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5 Benefits of a Prenuptial Agreement

5 Benefits of a Prenuptial Agreement

5 Benefits of a Prenuptial Agreement

Prenuptial agreements have a pretty bad reputation. Most people think these contracts are only for wealthy people marrying for the money, but these are untrue assumptions about contracts like this that stop people from reaping their benefits. Frank Family Law is a trusted and reliable family law practice in Altamonte Springs, ready to help when professional advice is essential.

Prenuptial agreements can help to protect your marriage in many different ways.

Before getting married, it is critically important to understand how a prenuptial agreement may benefit the union. It does not require being wealthy or having a million assets to be beneficial. Couples use them every day to protect themselves in their marriages. Being aware of the different situations that may warrant a prenuptial agreement is essential to make an educated, empowered decision about the wedding. Be mindful of these situations that may require a prenup:

You or your partner is part of a family business.

Family businesses in marriage can be tricky. Often, divorce proceedings without a prenuptial agreement can lead to a loss of claim to the family business. However, if you or your partner hopes to keep the family business in the family, a prenuptial agreement can help to protect that in most situations. Sometimes parents or other family members even request prenups to protect the company from harm.

You or your partner has a lot of debt.

It is vital to discuss finances with a partner before getting married to determine if one of you has a significant amount of debt owed to a bank, loan officer, or credit company. Most couples do not enter a marriage with the same burden of debt. If one of you is strapped with significant debt, a prenuptial agreement protects the other spouse from being responsible for the debt if the intended spouse dies or fails to pay. When that debt represents a significant amount of money, this is considerable protection to have.
It is also important to note that debt is considered during divorce proceedings as well. Knowing that debt is considered means that if your spouse comes into the marriage with significant debt and you eventually divorce, that debt will become your responsibility too. Prenuptial agreements can help prevent this by ensuring that the debt remains the responsibility of the person who incurred it. If that person dies or you divorce, the debt is either dissolved or becomes the responsibility of the next of kin.

You or your partner has significant assets.

One partner having significant assets is one of the most common reasons for a prenuptial agreement. Most people mistakenly believe that it's based on greed or selfishness to protect your assets under this condition. However, it can be pretty beneficial. Prenuptial agreements can help the higher asset spouse to understand that their spouse is marrying them for the right reasons. It also helps the marrying spouse manage expectations and make an educated decision about the marriage.
It's important to note that this does not mean that the asset-holding spouse will get all of the property and money in the case of divorce. The Couples can still split the assets gained throughout the marriage during divorce proceedings. A prenuptial agreement also does not prevent either spouse from being eligible for spousal support or alimony.

You or your partner has children from a previous marriage.

Most couples don't consider how children from previous marriages might affect their financial situation in the future. A prenuptial agreement helps to protect those children in the case of your death. If you marry someone without a prenuptial agreement in place, your assets will go to your surviving spouse. Depending on the ages of your children, this could mean that they miss out on inheritance and assets entirely. Once you are gone, your spouse can reallocate those assets to beneficiaries of their choosing, leaving your children entirely out of the equation.

You or your partner own a business.

Whether a small mom-and-pop shop or a large corporation, it is crucial to consider your business. When you get married, your business is viewed as an asset divided under normal divorce circumstances. This consideration means that your spouse could lay claim to half or even all of your business. As a result, you could lose your life's work and livelihood. With a prenuptial agreement, the business can remain outside of the reach of divorce proceedings. It will remain under your care and will not be considered a divisible asset by divorce courts.

Do I need a lawyer for a prenuptial agreement?

A qualified attorney’s expertise can be a priceless asset in the prenup process. Prenuptial Agreements are complicated and serious, requiring an expert hand to create. It is crucial to keep in mind that no two Prenuptial Agreements are the same. You and your future spouse can customize your prenuptial agreement to reflect your unique situation and ensure that it is a tool for harmony and equality in your future marriage. Frank Family Law can give the professional advice and expertise required to make an informed decision on a prenuptial agreement with a family law practice in Altamonte Springs and serving nearby vicinities.