Here’s a fast look at the benefits and disadvantages of premarital agreements. Prenuptial agreements—in which are a legally binding contract that establishes how spouses are going to divide assets and debts should they divorce—are just for the affluent, or those with a lot of assets. More and more couples are utilizing prenups now more than ever before. If you’re thinking about whether a prenup is right for you, or if you’re thinking about signing your fiancé’s proposed prenup, it’s wise to consider the pros and cons of it.
What Are the Benefits of Prenuptial Agreements?
Below are some of the most general benefits of devising (or talking about) a prenuptial agreement.
Thinking about a prenup is one of the most ideal ways to open a line of discussion in your relationship. Discussing a prenup might seem intimidating or possibly scary, but being clear and truthful concerning property, finances, and each of your hopes prior to the wedding might be one of the most beneficial facets of the process. Even when you and your spouse discuss the contract and never draft it, you’re beginning your marriage with an honest line of communication and a degree of trust that can keep your marriage afloat for many years. A correctly devised prenup enables the couple to take on the most general legal obstacles in divorce, in which can bring a fast resolution to the process and prevent a lengthy court battle.
Save Time and Money
Divorces are costly and time-consuming. Even if you both agree on each legal matter that scourges typical divorces, you might still end up spending hundreds or possibly thousands of dollars in court fees and potential legal fees prior to a judge formally terminating your marriage. A lot of couples start their divorce process on the same page, but as time goes on, they tend to disagree on important matters, in which is going to cost more and take more time.
Protect Your Separate Property and Family Heirlooms
One of the most litigious areas of divorce is when the time comes for the division assets and debts. Most people think of it as “what’s mine is yours and what’s yours is mine” as the marriage adage, but when it comes to divorce, a lot of couples disagree on which spouse should walk away with particular property. The divorce judge’s initial approach is usually to determine and classify the couple’s property as individual or marital and then divides it. A prenup is able to be specifically helpful if you go into the marriage with family heirlooms or other belongings that you want to keep separate. The spouses can define who owns what and how they’d like to manage distribution of the assets should they divorce later.
Establish What Qualifies as Marital Property
When you get divorced, the court is going to divide marital property between the spouses in accordance with your state’s laws. In communal property states, courts suppose that each asset attained throughout the marriage belongs to both spouses equally, and the judge is going to split the value uniformly between them. In states that are equitable distribution states, judges assess who is owner of the marital property and then split it justly among the spouses. A prenuptial agreement can aid couples in avoiding an embittered and lengthy property struggle by establishing what warrants as marital property and how you would like to split it in your divorce. Many couples believe that a fifty/ fifty split would be ideal, but for others, an unequal split may be more suitable. One of the more beneficial aspects of this type of agreement is that you and your spouse can determine how you’d manage it and the court is going to respect your wishes.
Safeguard Yourself from Debt
Along with collected assets, the court is going to split marital debt and other arrears in the divorce. If your spouse comes into the marriage with a considerable amount of credit card or other loan debt, a prenup is going to enable you to describe the liabilities as your spouse’s individual debt and specify how you are going to manage it in a divorce.
What Are the Disadvantages to a Prenup?
Even though there are a lot of advantages to devising a prenup, it’s important for you to understand the possible drawbacks prior to you agreeing to sign it.
It’s a Romance Destroyer
A prenup isn’t romantic, holding hands, and walks under the stars are. There’s no perfect way to destroy that vibe than by discussing the possibility for a future divorce. Even though marriage is a partnership that goes further than romance and includes serious matters like property and financials, for many couples, talking about these issues could put a bruise in this exciting time. Make sure you carefully think about the right time and place to talk about a prenup, and don’t wait until after the wedding invitations have already been mailed to bring it up. Not only is that unfair to your future spouse, in a lot of states, when you spring a prenup on your fiancé prior the wedding, and it’s signed coercion, a court might find the agreement to be invalid, since your spouse didn’t have adequate time to carefully weigh the terms.
It Might Be Needless
In a lot of states, their divorce laws may presently accomplish your goals for the division of property division. For instance, if you reside in a communal property state, the judge is going to equally split all the property that you and your spouse collected throughout the marriage. If you don’t want more than a fifty/ fifty split of the marital property, a prenup is most likely unneeded. Just be sure you get a hold of an experienced family law attorney, so you comprehend your state’s laws prior to getting married. There are also some issues that you can’t come to a resolution in a prenup, such as child custody, parenting time, and child support. When you’re not worried about how the court is going to split property or debt, and your only concern is who the judge is going to appoint as the custodial parent of your future children, a prenup is unneeded. Courts retain authority to determine custody and/or child support—you cannot predict these matters in an agreement.
It Can Be Unequal
Many people find it easy to have blinders on when they are first-off in a relationship. A lot of parties sign their prenuptial agreement thinking “We’ll never get divorced, so what does it matter?” Its important since if you sign a prenup that is in favor of your spouse, you could come away from your divorce with less than what you are entitled to. The key to guaranteeing that your prenup is in favor of each of you equally is for each of you to hire independent lawyer to devise and review the document prior to you signing it.
Melissa Heinig, A. (2018, October 31). Prenuptial agreement benefits and drawbacks. www.nolo.com. Retrieved January 3, 2022, from https://www.nolo.com/legal-encyclopedia/prenuptial-agreement-benefits-drawbacks-29909.html
Need an Affordable Prenuptial Agreement Lawyer in Scottsdale?
Moshier Law should be your choice when you need the best prenuptial agreement assistance in Scottsdale. An experienced family law attorney will work with you to obtain the best possible outcome in your situation. We advocate for our clients so they have the brightest future possible. Give us a call today at 480-999-0800 for a free consultation.
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