You may have assumptions about the term “prenup” and what it means for you and your soon-to-be spouse. Yet, signing a prenup doesn’t mean you believe divorce is imminent. It simply means that you and your spouse know you can’t possibly predict the future.
When a large number of assets are involved, a prenup can protect you, your spouse and your family in the event of a death or divorce.
How Can a Prenuptial Agreement Protect You & Your Family?
A prenup is an agreement entered into prior to marriage by both spouses. It defines what happens to you and your spouse’s assets in the unfortunate event of divorce or death. One of the most common reasons couples enter into a prenup agreement is to prevent separate property (property you obtain before marriage) from becoming community property.
By entering into a prenup, you can:
- Protect your assets: If you have high-value assets you obtained before your marriage, you can ensure you keep them in the event of divorce or death. The same goes for your soon-to-be spouse.
- Protect your business: Do you have a business? A prenup will define whether or not your new spouse will have an interest in your business.
- Protect your children’s inheritance: A prenup can protect the inheritance you set aside for your children from a previous relationship.
- Protect your inheritance: If you have an inheritance or expect to receive one in the future, a prenup can protect it.
What Is a Postnuptial Agreement?
If you’re currently married without a prenup, you do have the option of entering into a postnuptial agreement. The protections are the same. The only difference is the agreement is signed post-wedding. Sometimes, couples opt for a postnuptial agreement to reduce the stress often induced by legal discussions before the wedding day.
Is a Prenup or Postnuptial Agreement for You?
In most cases, if either spouse is bringing high-value assets into a marriage, we recommend a prenup or postnuptial agreement. Yet, each situation is different. A professional family law attorney can help you decide whether a prenup or postnuptial agreement is right for you and your new spouse.