A prenuptial agreement, also known as a premarital agreement, or an antenuptial agreement seems to be quite a controversial subject when speaking about the dissolution of marriage and the legalities that protect the rights of each spouse bound by the laws surrounding it. That signing one implies that you and your spouse foresee divorce in your future. But this is a misconception we hope to shed light on in this post.
Signing a prenup does not entail that you foresee marriage termination. Not at all. It simply is a lawful practice that has to do with technicalities we shall discuss below. Here are reasons why you should consider it.
1. Asset And Property Safeguarding
It is a financial “umbrella” over assets, bonds, stocks, and/or properties that are named under each spouse separately, prior to the marriage. Think of it as a guarantee that should the marriage be made invalid, you and your spouse will not have to go through the grueling process of having your finances evaluated, qualified, and split unfairly.
This will prove especially assuring if your assets, investments, and properties are diversified. Again, it serves as a mere security for your financial standing into the future, and not that either you or your spouse shall choose to file for divorce sometime soon.
2. Debt Payments
Aside from assets, investments, and properties, the court will apportion debts as well. Credits and loans that are under conjugal ownership shall be split in two, even if only you or your spouse benefitted from and/or used the amount borrowed. Or it was agreed upon that one of you will pay for a specific type of debt.
Regardless of these agreements, a divorce will easily proclaim them null and void. Instead, every financial factor will be split in a 50/50 ratio. And yes, it may lead to an inequitable outcome.
But with a premarital agreement at hand, this complication can be avoided entirely. Your prenup attorney in Katy will help you clearly define debt and accumulated assets in a manifest way. And separately, between you and your spouse.
3. Financial Security For Your Children
If you have been in a dissolved marriage prior to meeting your current ex-spouse, we will assume that you had dealt with ensuring your children’s financial security at the time. Only, this may be negatively impacted if you undergo another divorce without having signed a prenup.
At any rate, the advantage of having signed said contract is that you get to make the decision of what percentage of your assets, investments, and properties will be given to each of your kids in the case of marriage termination, whether by natural causes or otherwise. This is applicable when it comes to which family members can be apportioned parts of your financial earnings and/or investments, too.
4. Inheritance And Family Relations
There are families and individuals alike who value “inheritance” to the utmost. In the event that you or your spouse belongs to such a family, a prenuptial agreement is your ticket that will legally ensure the proper passing down of said inheritance.
It will be the written document signifying that members who belong to the family (by blood) will receive a part of or the whole of a family legacy, whether that be in assets, estate, investments, business, and business shares, etc.
5. Communication About Financial Ownership
A prenuptial agreement is a platform for you and your spouse to talk about finances and how you want to go about it now that you are to be married. Finances are always difficult and awkward to put on center stage and seriously converse about.
With meetings and/or transactions for a prenuptial agreement, you can be forthright and particular about your expectations regarding financial handling.
6. Economical In The Long-Run
Should divorce be at the offing, and you and your spouse have decided to file for your separation legally, a prenup serves as a kind of insurance. It is insurance over evading the lengthy, tedious, and expensive process of a divorce lawsuit, sans a premarital agreement.