What is a Prenuptial Agreement
A prenuptial agreement is a contract that is made prior to a marriage. Its purpose is to, prior to the marriage, define the rights and responsibilities of each party upon the possibility of a Divorce or Death of a spouse. It gives people the ability to bargain for a determine their futures prior to engaging an ugly or messy divorce, and if drafted correctly will completely negate the need for an ugly or messy divorce.
With people delaying marriage in greater numbers each year, it is much more common to have already established independent wealth or assets prior to a marriage, including retirement assets, stocks and bonds, or even a home. There are other situations, where they may be helpful as well, including:
- Second or Third marriages
- a party coming into a marriage with a greater amount of assets
- protecting against a spouse’s premarital debts
- protecting families from prior relationships
- peace of mind that your affairs are already handled
- disparate income levels
- protecting a premarital asset or assets
- joint business owners marrying
- different financial goals for individuals marrying
They used to have a negative connotation but not so much any more. The cost of a prenuptial agreement is relatively small in comparison with the costs of a highly contested divorce. There are issues that may come up with premarital property where your separate property can lose its separate character if “commingled”. It is certainly worth having a discussion about whether a prenuptial agreement may be a good idea for you, so feel free to contact us at (734) 821-7411 or (313) 945-9050 for a consultation. This is something we believe in strongly to ensure a peaceful and harmonious marriage and would be happy to help.