What you need to know about a prenuptial agreement

Prenuptial agreements have gotten a bad reputation in the past. They were often used by the wealthy to protect their assets from those who entered a marriage with them. While some people may still use a prenuptial agreement for this purpose, “prenup” is no longer a dirty word. In fact, couples willing to talk openly about a prenup sometimes have a healthier relationship.

What is a prenuptial agreement?

Simply put, a prenuptial agreement is a premarital contract. It can discuss how to divide assets and finances if there is a divorce. It can touch on other future issues, too.

Why would you use a prenuptial agreement?

A prenuptial agreement may feel like you’re preparing for doomsday, or that you don’t trust your spouse. However, in many cases, it’s a sign that you have great trust and respect for each other. It means taking the time to discuss the matters in advance and minimize the cost and conflict should a divorce occur. It’s like saying, this is the last thing I want to happen, but if it does, let’s do it while minimizing anger. We can avoid fighting over assets and money by having a prenup.

There are many good reasons to get a prenup. For instance, wanting to protect a long-held family asset or business. Another reason is to preempt a volatile divorce, should one occur, by having the big things spelled out ahead of time. Since Arizona is a community property state, it may be helpful to specify who brings what into the marriage, so there is no battle for it down the road. There are other good reasons to consider a prenuptial agreement as well and an experienced attorney will be able to walk you through them.

What are some of the top reasons people get a prenuptial agreement?

Other reasons people get a prenuptial agreement include:

• You come into marriage with a child. A prenup can help ensure your child receives what you want them to have.
• One spouse intends to be a stay-at-home-parent. A prenup can specify financial arrangements should a dissolution occur.
• You don’t want to pay your spouse’s debt. You want to specify that if your spouse accrues a lot of debt during the marriage, it doesn’t fall on you.
• One or both of you have businesses. It protects your investments, such as a business you created or a family business handed down.

Is a prenuptial agreement right for you?

Each couple has to decide if a prenup is right for their situation. There are many benefits, even if it doesn’t feel romantic. One of the ways to determine if a prenuptial agreement is right for you is to consult an attorney. If you want to learn more about prenuptial agreements, contact Ogborne Law today.