A prenuptial agreement is a contract between two people before they marry. The agreement typically outlines how the couple will handle their finances and property should they divorce. There are many reasons why someone in Englewood Cliffs, New Jersey might want to create a prenuptial agreement.
What are some examples of when a prenuptial agreement would be beneficial?
Prenuptial agreements can be beneficial in a variety of situations, such as the following:
- One spouse has more assets
- A large amount of assets is due from an inheritance
- Keeping finances separated
- Own a business together with a spouse
- One spouse has debts
For example, if one spouse has significantly more assets than the other, a prenup can help protect the less-wealthy spouse’s financial interests. Similarly, if one spouse is likely to inherit a large sum of money or property, a prenup can ensure that those assets are not subject to division in the event of a divorce.
Common reasons to have a prenup
Another common reason couples enter into a prenuptial agreement is to separate their finances. This can be especially important for couples who own businesses together or who have significant debts. For example, if one person has a lot of debt, they may want to ensure their spouse is not responsible for that debt if the marriage ends. By keeping their finances separate, couples can avoid potential arguments and complications.
If either you or your partner owns a business, it is not a bad idea to have a prenuptial agreement. Without one, your business could be at risk in a divorce. In addition, if you are planning to get married and either you or your future spouse has significant assets, a prenup can protect those assets in the event of a divorce.
Finally, prenuptial agreements can also outline each spouse’s rights and responsibilities in the event of a divorce. For example, a prenup can specify the division of property, who will pay alimony or child support, and what will happen to the couple’s shared businesses or assets. Couples can avoid potential disputes and disagreements later by having these things spelled out in advance.
Prenups aren’t romantic, are they?
Ultimately, whether to enter into a prenuptial agreement is a personal decision. But a prenup boils down to protecting financial security. And when framed as such, caring about your spouse’s financial well-being can be considered a romantic gesture.