A prenuptial agreement (also referred to as premarital or antenuptial) is a written private contract between two parties before marriage or civil union. The contract prepared couples for any eventuality. For instance, how would you want to handle assets in case of a divorce? Do you need a prenuptial agreement? Call Indiana family attorney Zentz Law at 317-677-7169 for help with drafting a prenup today!
Prenuptial agreements or prenup lists all properties of each party and specifies the property rights of each person after marriage. While many people may be reluctant to undertake a prenup, it is one of the smart financial planning decisions in a marriage
So, what happens when you sign a prenuptial agreement?
Liberty To Determine What Happens To Your Property
A prenuptial agreement clarifies what happens to your property after death. Couples with children from a previous marriage can use the agreement to provide for their children and partner. Without this agreement, the surviving spouse may lay claim to a massive portion of the property to the disadvantage of the children.
Typically prenups give you the liberty to determine the person you want to inherit your property.
For instance, you can opt to leave your property to your charities or family members.
Do You Need a Prenuptial Agreement?
Prenuptial Agreements Clarify Financial Rights
Couples must set out their financial rights and responsibilities. A prenup helps to clarify responsibilities during marriage, whether you have kids or not.
Prenuptial Agreements Ensure Premarital Asses are Off-limits
The premarital agreement often classifies property brought into the marriage as your separate property. Similarly, the agreement can state property acquired during a marriage is subject to division. Most couples who enter into prenuptial agreement find this arrangement fair. However, each agreement is unique and customized to address the unique assets hence allowing the couple to come up with terms they feel comfortable with.
Prenuptial Agreements Avoid Problems In Case of a Divorce
Disagreements after divorce can turn out to be quite nasty. A premarital agreement helps to avoid these disagreements by specifying how you want your property to be subdivided. It also specifies in advance whether either partner receives alimony. The contract can either waive the alimony or avoid the topic altogether. If you decide to waive alimony, you can’t seek alimony after divorce. Similarly, if you do not include alimony in the contract, you cannot go after your partner for alimony.
Prenuptial Agreements Protect You from Partners Debt
When you get in a prenuptial agreement, you shield yourself from spouse debts. Without a prenup, your partner can enter debts that you are a liable to pay.
Failure to get into a prenuptial agreement leaves you at the mercy of state law. This means the state laws will determine what happens to your property after death or divorce. Property acquired during your marriage will be classified under marital or community property. The state laws may also dictate what happen to property acquired before the marriage.
The law considers marriage as a contract between couples. This means that a spouse has the right to own and manage property acquired during the marriage.
Make a Valid Prenuptial Agreement Today
There are numerous benefits of getting into a prenuptial agreement. Note the enforcement and validity of prenuptial agreements vary from state to state. The state to apply depends on where the couples leave and where the marriage took place. It is prudent that you involve lawyers before writing the agreement and have them review it after writing.