Is a Prenuptial Agreement Necessary?
If you are planning to wed, you may wonder whether you need a prenuptial agreement. Undoubtedly, you’ve heard mention of prenuptial agreements in the news as well as in films and on television programs of different types.
A prenuptial agreement is defined as contract entered into by a couple in advance of marriage. A prenup is designed to establish the rights of the parties in regard to assets and debts should the marriage fail. There are a number of factors to consider in determining whether a prenuptial agreement is necessary.
Income and Asset Disparity
One of the primary reasons a prenuptial agreement may be necessary is if a significant disparity exists between the income and assets of the parties. This is the situation most often illustrated by the media and on films and television when prenups are discussed.
A prenuptial agreement is designed to protect the assets a wealthier person brings into a marriage. Although assets brought into a marriage technically are considered separate property as a general rule in the event of divorce, a prenup clarifies this point. A prenup can delineate that the other spouse will not make a claim for these assets.
Future Income Considerations
If the couple planning marriage anticipate one of the pair to experience a significant increase in income after the marriage, a prenuptial agreement may be in order. For example, if one of the partners is in medical school prior to marriage, and will graduate after the marriage, a prenup works to ensure that the income is addressed fairly and in an agreed-to manner in the event of a divorce.
A prenup can protect the interests of the spouse who supported the medical student during school. In addition, a prenup can protect the doctor in the relationship from being unfairly financially gutted during divorce proceedings.
Prenuptial Agreement and Children from a Prior Marriage
If one or both of the partners in a couple contemplating marriage have been wed before, a prenuptial agreement may be advisable. In such a situation, a person needs to not only deliberate about protecting his or her own interests but those of children born of another marriage as well.
Prenuptial Agreement and a Business Owner
Another instance in which a prenuptial agreement may be necessary is if one or both parties who plan to wed own a business. More than a few businesses have been wrecked during divorce proceedings. A prenup can be a buttress against harmed being caused to a business if a marriage fails.
A prenuptial agreement is a complicated contract. Therefore, it is advisable that an individual in need of this type of agreement seek capable, experienced legal assistance.