A prenuptial agreement or contract is a legal document created and signed by a couple before their marriage. It is also known as a prenup or premarital agreement, and comprises of a list of all the assets, property, and debts each individual owns. It also outlines the financial and property rights of each person during their marriage.
Is a Prenup the Right Option for you?
While most people think that prenuptial agreements are only for the rich, that is not the case. Every person has a different reason for signing a prenup before marriage depending on their unique circumstances. Here are some common reasons why people consider entering into this agreement:
Outline Financial Rights
Some people just want to clarify their property and financial rights and responsibilities during the course of marriage, regardless of their financial status.
Pass Down Property to Pre-marital Children
People who have children before marriage use prenuptial agreements to outline what will happen to their separate property if they die or become incapacitated. Some of them may want to pass on their property to their pre-marital children. Using a prenup, you can ensure that the surviving spouse does not end up claiming the large portion of your separate property, leaving less for your children. You can specify what assets and property your children are entitled to receive after you pass away.
Avoid Unfair Distribution During a Divorce
A prenup allows you to avoid any arguments or unnecessary negotiations regarding distribution of property, debts, and assets at the time of divorce. It enables you to plan in advance how everything will be divided in order to avoid any costly and time-consuming arguments and disputes down the road.
The Pros and Cons of a Premarital Agreement
Entering into a prenup is a very personal decision and should never be taken lightly. Since it involves discussions about the possibility of dissolving your marriage, it can adversely affect your relationship. Therefore, it is essential to weigh in its pros and cons before you decide to bring up this topic with your future spouse.
Pros
- Protect your assets and family business, if any.
- Make financial agreements with your future spouse official and legally enforceable.
- Avoid potential shared debt liability.
- Reduce conflicts during divorce proceedings.
- Distinguish between separate and marital property beforehand.
- Support your estate plan and decrease the probability of court involvement in the future.
Cons
- It can create distrust and significantly affect the integrity of a relationship.
- A prenup does not address child custody or child support issues.
- Court may rule certain points of a prenuptial agreement unenforceable depending on your case.
- Non-monetary matters cannot be addressed through a prenup.
No one plans to get divorced before their marriage, but certain circumstances lead to the dissolution of many relationships. If you want to protect your assets and property and avoid being held accountable for your spouse’s debt, you should plan beforehand and consider the possibility of a prenup. For more information, contact the Fitzgerald Law Firm, P.C. to schedule a free consultation today and talk to an experienced Naperville divorce attorney.