Prenuptial Agreements Can Protect Assets in Case of Divorce or Death

Prenuptial Agreements Can Protect Assets in Case of Divorce or Death

Contrary to most individual’s belief, prenuptial agreements are not just about a couple divorcing. These agreements can protect assets in case of the death of one of the spouses. If there are children or extended family that someone wishes to leave various assets to, a prenuptial agreement can spell out the specific guidelines in which these assets will be distributed. In the case of a divorce, the assets that were accumulated before marriage are already agreed upon so it is not part of the divorce settlement proceedings. When someone prefers to have an agreement drafted and signed before a marriage, it can save thousands of dollars in attorney fees and court costs if the couple should divorce.

The thought that prenuptial agreements exist to manipulate a financially weaker partner is incorrect. The reason for these agreements is to protect assets that could be merged together in the future into marital assets. They also function as a tool to prevent assets that someone has worked for all of their life from being taken by a spouse in the event of a divorce. If one partner has a business with a large amount of assets, they may want the business and the assets to go to the surviving children from a previous marriage. If there is no agreement in place and the spouse dies, the surviving spouse could lay claim to the business because of their marriage.

These agreements can also address whether one spouse will pay the other spouse alimony or spousal support. It can also address how any and all assets will be split in the event of a divorce or a death of either partner. It can outline who and how assets can be sold or disposed of during a marriage. This helps to cover both partners, not just one. An agreement cannot be one-sided to be legal. For example, if a spouse agrees to a small amount of alimony based off a current salary and the partner paying is making substantially more money, this could allow that section of the agreement to be voided in the event of a divorce. For more information on the legal basis and writing of these agreements, check out Thompsonanddeveny.com.

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