Contrary to popular belief, prenuptial agreements are not just for affluent people. Many people tend to believe that getting a prenup may strain their relationship as it indicates you already have one foot out the door. In reality, however, a prenup is a safety net that is a part of planning a wedding.
Creating a prenuptial agreement does not mean that you are skeptical about the success of the marriage. A prenup works pretty much like insurance. Nobody buys a car planning to get into a wreck, though it is always nice to know that you are protected. Couples can benefit greatly from prenups.
Many people walk into marriage without any planning for the unforeseen future. And though it’s romantic, it’s neither practical nor wise. Therefore, it’s important that you come to an understanding with your partner about the division of assets in case of divorce and have your family lawyer draft a harmonious premarital agreement. Here’s why you should get a prenup:
About 50% of all marriages end in divorce or separation.
Divorce, just like marriage, is a common experience. An unhealthy marriage can be detrimental for both partners and their children. However painful the process of divorce may be, it’s important to get out of a toxic or non-functional relationship. More than 30% of marriages end in divorce in Australia. While this statistic may not hold true for your marriage, it does not hurt to be protected.
A divorce can hurt your credit.
A prenup saves you from being burdened by the debts of your spouse. A divorce can devastate you financially if your assets are not protected with a prenuptial agreement. A family lawyer will tell you that a prenup makes the divorce process infinitely less stressful in terms of finance, as it governs how assets will be divided between the partners.
Makes the process of divorce less unpleasant.
As a prenuptial agreement allows you to specify division of assets in advance, you can avoid unpleasantness during the process of divorce. A family lawyer will tell you that this legal agreement can help you avoid potential arguments with your spouse if you ever decide to part ways.
Clarifies financial rights.
You can keep your finances separate with a prenuptial agreement. If you don’t enter into a premarital agreement, even a separate bank account will be considered marital property in a divorce. Regardless of your financial status, there are certain things that you may want to keep separate or under your name even during the marriage.
With a prenup, you can keep the money you created for yourself under your name. This does not mean you cannot share it with your spouse while you are married to them. Even if you end your marriage, you can still choose to give your funds to your partner. However, you must be able to choose how you spend that money. Without a prenup, your partner can claim that money even if you don’t want to give it to them.
Different states have different rules about prenup and divorce. You must ask your prenup lawyer to walk you through the rules of the state that issues your marriage license. In some jurisdictions, you cannot forgo alimony even if you enter a prenup. Some jurisdictions allow parties to limit alimony payments with a prenup.