Who is in need of a prenuptial agreement?

| Apr 2, 2021 | Divorce |

Many couples do not anticipate getting a divorce, but if they do, they might wish they had a prenuptial agreement on hand to guide them. People often associate prenuptial agreements with wealthy couples. In reality, any couple may draft a prenup and put it into effect. 

Still, it is true that some couples may benefit more from having a prenup than others. CNBC describes some situations in which a couple may have a special interest in composing a prenuptial agreement. 

Unequal income and assets

A prenup may be especially important if you earn less than your spouse or possess fewer assets. In the event of a divorce, you may end up with less than you need to start a new life. Couples with this kind of income disparity sometimes create a prenuptial agreement that provides for the spouse that earns less if they divorce. This arrangement may also help if a spouse wants to stay home and raise the children. 

Dealing with inheritances

Generally, when you inherit money, whatever you inherit is separate property. If so, a judge will not divide it in a divorce settlement. Still, if you commingle your inheritance in any way with marital property, your spouse could claim you have turned your inheritance into marital property. With a prenuptial document, you can clarify the status of your inheritance and protect it from threats of division. 

Owning a business

As a business owner, you should consider how to protect your business if you get a divorce. Your spouse might lay claim to some of your business value, particularly if your spouse contributed money or labor to your operation. In a prenup, you can designate your business as separate property and clarify the responsibilities you and your spouse have towards the business. 

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