When people decide to marry, they often believe that their union will last forever. Unfortunately, this is not the case for many marriages, as many will end in divorce. When planning your wedding, divorce is usually the last thing on your mind. You are hopeful for the future with your spouse and likely want to avoid discussions about the potential “what ifs.”
However, whether you want to admit it or not, divorce is relatively common these days. When couples go through the divorce process, there is often stress associated with the decisions that come with separation. While your marriage may end in divorce, however, there are ways to minimize the financial impact of divorce if you plan ahead. For example, prenuptial agreements are an effective way to stipulate in advance of your marriage what will happen in the event of a divorce.
Prenups allow you to:
- Avoid arguments over property distribution upon divorce.
- Not be responsible for your spouse’s debts in the event of a divorce.
- Make decisions on property division at a time when you are getting along.
- Protect your personal property.
- Protect the inheritance rights of children and other family members from a previous marriage.
- Protect your business from your spouse.
- Protect your financial interests if you enter the marriage with a great deal of wealth.
- Provide you with control over your property and finances.
- Pre-determine the amount and duration of spousal support/alimony, or the waiver of same.
- Pre-determine rights to retirement accounts and/or waiver of same.
- Pre-determine how living expenses will be paid/shared.
- Avoid and/or limit the cost of litigation.
It’s important to consider protecting yourself with a prenuptial agreement. This legal document spells out how your assets and debts will be divided if your marriage ends. It can also prevent lengthy and expensive court battles between you and your spouse.
No one wants to anticipate a divorce. However, if your marriage does end, a prenuptial agreement will make the divorce less complicated, since the division of assets and debts have already been negotiated and agreed upon by both parties.
When drafting your prenuptial agreement, it is crucial that you hire an experienced attorney to prepare the document and guide you through the process. At Law Practice Ltd., we will be there for you during this process.