Truth be told, marriage isn’t just a romantic relationship, but also a kind of business-like one. This twofold nature and objective of marriage has steered to the increased recognition that prenuptial agreements (also referred to as a premarital agreement or prenup) may be handy in safeguarding a spouse’s financial interests.
The following are examinations of the pros and cons of prenuptial agreements, even though differences in state laws are also essential to think about.
Prenuptial Agreement Pros
- A premarital agreement may safeguard the inheritance rights of any children and grandchildren from previous marriages.
- If you own your own business or have a professional practice, a premarital agreement may safeguard those interests so the business or practice will not be divided and subjected to the management or participation of your ex-spouse when you get divorced.
- When one spouse has considerably more debt than the other spouse, premarital agreements may safeguard the spouse with no debt is free from having to take over the responsibilities of the other.
- You might be planning to give up a profitable career following the marriage, a premarital agreement can guarantee that you’ll be reimbursed for your sacrifice if the marriage doesn’t work out.
- A premarital agreement may also examine more than the financial attributes of the marriage and may cover some of the elements in decision-making and sharing of responsibilities in which the parties agreed to beforehand.
- A premarital agreement can restrict the amount of alimony that one spouse will be required to pay the other following the divorce.
- A premarital agreement may safeguard the financial interests of older individuals, individuals that are entering into their 2nd or future marriages, and individuals with considerable wealth.
Prenuptial Agreement Cons
- The agreement might need you to relinquish the right to inherit from your spouse’s estate when they pass away. Under law, you are allowed to a part of the estate in the event of your spouse not having such a provision in their will.
- If you play a part to the ongoing success and expansion of your spouse’s business or professional practice by engaging with clients or caring for the home, you might not be allowed to claim a part of the increased value if you agreed otherwise in a premarital agreement. Under the law of a lot of states, increased value would be thought of as divided marital property.
- Beginning a relationship with a contract that establishes the details of what will occurs upon passing or divorce can generate a perception of lack of trustworthiness.
- It may be hard to plan into the future about how possible issues should be managed, and what could seem like an insignificant compromise in the romanticized premarital time might seem more important and arduous in the future.
- A low- or non-earning spouse might not be able to maintain the lifestyle in which they have become accustomed throughout the marriage if the agreement significantly restricts the amount of alimony in which that spouse is allowed.
- In the “honeymoon” phase of a marriage, one spouse might agree to terms that aren’t in their best interests since they are “too in love” to be concerned about the financial details and can’t imagine the marriage coming to a premature end.
Is a Prenuptial Agreement Right for You? Get Professional Legal Assistance
If you and/ or your future partner are thinking about a premarital agreement, it’s vital to weigh the pros and cons of prenuptial agreements beforehand. You might also require the assistance of an experienced family law attorney. In fact, it’s important that each partner speaks with a different attorney (from different law firms) to guarantee the rights and interests of each of them are covered. Begin today by finding a family law attorney with prenuptial knowledge near you.
Source:
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“Pros and Cons: Prenuptial Agreements.” Findlaw, 18 Nov. 2018, family.findlaw.com/marriage/pros-and-cons-premarital-agreements-prenuptials.html.
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