There is something a bit cynical about a prenuptial agreement. It can feel as if you have no faith in the relationship. But, things happen, people can and do fall out of love.
A prenuptial agreement is vital if you are older and have many assets. It is particularly important for business owners. In many states, if you marry somebody and then divorce, your ex can claim a share in the business. Valuing a business can be hard; the recommendation is to say that the income from the business is marital property, but the business, itself, is yours.
People with children from a former marriage should also strongly consider a prenup. In this case, the prenuptial agreement can be important even if you manage to stay together until death parts, as it can help reduce wrangling over inheritance. You should clearly specify what your children would receive in the event of your death in the agreement, as well as in your will.
So, what kind of assets can a prenuptial agreement cover? In general, it covers only property that was acquired before the marriage. Therefore, if you bought a house before your wedding vows, the agreement can still say that the house is yours (even if you both live there). However, it might also say you’re responsible for maintenance.
In addition to protecting your business, a prenup can safeguard your retirement plan. It can also help keep family heirlooms in your birth family. These are just some of the options available.
As you can see, there are ample benefits to this legal instrument. Drawing up a proper prenuptial agreement requires that you both have legal advice. Remember: State laws vary, and a good lawyer can help protect your interests and ensure the contract is legally sound. Find out more from a local attorney.