The Basics of Prenuptial Agreements
A prenuptial agreement is no longer just for the wealthy. Today, folks of all economic backgrounds and in all situations are deciding to legally clarify their rights and responsibilities before they get married. It can also clarify in advance how property and assets will be divided should the couple decide to divorce.
We should start with a definition. What is a prenup? It is written agreement that a couple signs before their marriage. If death or divorce separates the couple, then the prenup states the rights of the properties of the couple or their legal heirs. It addresses both assets and liabilities.
All types of people realize the benefits of using a prenup and therefore they have started using it. It is not meant for wealthy people alone anymore.
Prenups give rights of the assets to the children of the couple as well. If a spouse dies, the children of the deceased spouse will have the rights to the assets and properties. It will also prevent the surviving spouse from taking control of all the assets.
Prenuptial agreements also clarify financial rights and responsibilities during the marriage. If one partner has significant debt, a prenuptial agreement can protect the other partner by releasing him or her of the responsibility of the debt incurred before marriage.
If a couple divorces, a prenuptial agreement can help reduce the stress and allow them to separate more amicably. A prenuptial agreement can address whether or not the spouse will receive alimony or spousal support. However, a spouse cannot give up their rights to alimony in a few states.
A prenuptial agreement can benefit anyone, and does not indicate that you and your spouse are not fully committed to honoring your marriage vows! On the contrary, a prenup allows the couple to spell out what they expect from each other financially, and creates a more harmonious union with fewer conflicts, now and in the future.
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