If you are getting married, you are probably looking forward to one of the most exciting times in your life. If you are busy planning your wedding, you are probably trying to get all the details together for your special day. Another item to add to your to-do list is working with an attorney to create a prenuptial agreement. A prenuptial agreement lays out what will happen to your debts and assets if you end up getting divorced.
You may think you do not need a prenuptial agreement because you do not anticipate getting divorced. However, there are many reasons to get a prenuptial agreement, including the opportunity to sit down and discuss what you would like to happen in the rare instance you get divorced. Knowing that you have a plan can offer you peace of mind while protecting yourself and your assets. Financial issues are one of the leading causes of divorce, so beginning your marriage by communicating clearly about your finances is an important step.
Protect Your Premarital Assets
Marriage is not simply joining two people together. It is also joining each party’s assets. A spouse that comes into a marriage with significant assets owns a business, or expects to inherit significant assets benefits from a prenuptial agreement. Without a prenuptial agreement, the spouse was fewer assets and may be able to recover significant assets during the divorce process. by creating a prenuptial agreement, the spouse is clearly outlined how their marital assets will be distributed when there is a divorce or one of the spouses passes away.
For example, if you own part of a family business, you may be concerned that you will lose some of the ownership in your family business in the divorce. If you create a prenuptial agreement, you can ensure that you keep all of your ownership in the family business. Prenuptial agreements can also protect the spouse with fewer assets by ensuring they receive some of the marital assets in the divorce. As part of the prenuptial agreement process, both spouses must have legal representation and understand the terms of the prenuptial agreement.
Provide Financial Security
A couple must divide their assets and debts during the divorce process. They have to distinguish the marital and separate property and decide how to divide it and distribute it between the spouses. This process can be extremely time-consuming and costly, especially when spouses do not agree. The more conflict between spouses, the more costly the divorce process will become. The couple will have to continue to pay attorneys fees and costs and financial experts as they work to divide up the assets and debts. A family lawyer helps people get through the divorce under the best possible conditions. However, when a couple already has a prenuptial agreement they have agreed to, the divorce process becomes significantly easier.
Instead of spending weeks, months, or even over a year trying to negotiate a divorce settlement agreement, the couple can use their prenuptial agreement as their settlement agreement. As long as the prenuptial agreement is legally valid in Texas, the court will enforce the terms of the agreement. Getting a divorce is always challenging, even when it is uncontested. A prenuptial agreement can cut back on some of the emotional and financial hardship and stress involved in dividing a couple’s property and debts.
Protect Against Marital Debt
It is important to note that the divorce process does not only require a separation of assets like a couple’s home, retirement accounts, vehicles, and bank accounts. The divorce process also involves dividing up a couple’s debt. Nobody wants to be stuck with another person’s accumulated debt. This is especially true when the person who has accumulated the debt is no longer your spouse through a divorce. However, you can be held accountable for your spouse’s debt during the marriage. A prenuptial agreement can prevent you from having to pay for debt accumulated by your soon-to-be ex-spouse.
For example, suppose your ex-spouse racked up over $15,000 in credit card debt that you did not know about. You could still be on the hook if they bring up the debt during your marriage. However, with a prenuptial agreement, you can state that you will not be responsible for the debt that the other spouse incurred during the marriage. You can tailor the prenuptial agreement to meet your specific goals.
Discussing and Setting Up a Solid Financial Framework to Start Your Marriage
Arguments over money frequently come down to spouses not being on the same page about finances. When people marry, they may have different spending habits or views about debt. When people sign a prenuptial agreement, they are forced to discuss major financial issues before marriage. A couple may think that they already have everything figured out for their prenuptial agreement, only to find out that they still need to discuss specific issues that they are not seeing eye-to-eye on. When a couple lays everything out on the table before they get married, they are less likely to be surprised by major financial issues later.
Many couples who sign a prenuptial agreement have a sense of peace going into their marriage because they know what will happen should they end up getting divorced. The stigma against getting a prenuptial agreement is beginning to wane as many become more conscious about their finances. Spouses want to take a proactive role in creating successful partnerships.
Discuss Your Case with an Experienced Attorney
The McKinney, Texas, family law attorneys at Divorce Concierge provide clients with affordable, flat-rate packages for uncontested divorces. We also offer affordable legal services for prenuptial agreements, post-nuptial agreements, and other family law matters. If you would like to discuss your family law matter with an experienced attorney who can help you address the issue affordably and efficiently, reach out to your Divorce Concierge today to schedule a free initial consultation.