You’ve heard that the first year of marriage is the hardest, and many believe that numerous new uncertainties come to light with the decision to get married. But thanks to a prenuptial agreement, finances are one matter that can be solved! By filing a prenuptial agreement, soon-to-be-married couples can determine what will happen to their finances and assets if they part ways or if one of them happens to pass away. While prenups generally protect the money and debts that the individuals already have, they can be written to protect finances that are gained throughout the marriage.
What is a Prenup?
A prenup is a document that typically states all the assets that each of the future spouses owns prior to saying “I do”. This lists savings, bank accounts, and possessions. The document can also delve into what they own together that will be considered marital property. For example, an inherited family heirloom can be guaranteed to stay in the family through a prenup. A prenup is generally put together to protect the couple against a difficult and costly divorce. As such, they can also include information about alimony and spousal support.
How a Prenup Protects One’s Financial Future
Through a prenup, each party can work to ensure that their own financial goals remain their own while coworking to combine their lives. For instance, if the soon-to-be-wed bride knows that she is likely to inherit money from her elderly great-aunt upon her death, she can secure that the money remains hers alone through the prenup. Likewise, the future groom may have a business venture that is just taking off but has enormous potential — through the prenup, he can protect the business and its generated income by claiming ownership of it in the prenup.
Not Just for Income
Prenups can be used for more than just protecting assets and future income — it can also prevent one of the parties from being strapped with a large debt load. If one of the future spouses plans to take out a loan or already owes debt, this can be figured into the prenup as well. If a separation happens, the one who benefited from the loan will keep the debt while the other party will be financially free.
The Benefits of a Prenup
Marriage provides couples with many uncertainties but a prenup is one way to ensure that each person’s future is financially stable. Even if things don’t go well with the relationship long-term, a prenup will help both of the partners to make choices that will benefit themselves whether they remain married or not. With a prenup, you can feel free to pursue your own financial wellbeing, ensuring that your money will remain your own and making you responsible for your personal choices.
Is it too Late for Married Couples?
If you’re already married but never considered a prenup, it’s not too late to make good choices for your financial future. With a postnup, you can go on to make similar decisions that will ensure a secure future with or without your spouse.
If you are a soon-to-be or already married couple, having your financial future secured is one of the most important monetary decisions that you can make. Contact one of our lawyers today to learn more about the process and how you can protect your future well-being.