If you’ve just gotten engaged, chances are talking about how you’ll divide assets in case of divorce is the last thing you want to do. But with more people entering into marriage with substantial assets and substantial debt, everyone – not just the rich — could gain from having a prenup. Here are 5 reasons why you need a prenuptial agreement:
Agreements prevent disagreements. Knowing how you’ll handle the division of property if you get divorced will give you peace of mind — which is actually a key to a long and healthy marriage! If you do split up, a prenup will benefit you both financially and emotionally: it will minimize legal fees and help you stay calm.
Protects your separate property and assets acquired during marriage. Are you entering the marriage with assets? Do you expect to inherit money from family? Are you a business owner who stands to accumulate assets? During marriage, certain actions and behaviors can muddy the waters of what is a separate vs. marital asset (i.e., will your new spouse help out at the business? This could change it to a marital asset open to division.) A prenup can clarify separate assets.
Sets tone for financial transparency during marriage. Money is one of the top issues couples argue about during marriage, and conflict over finances is one of the key reasons people divorce. Being open about finances at the beginning of your marriage sets a precedent for financial transparency and increases trust. The more comfortable you become navigating financial issues, the less likely you are to fight over money.
Prenups override state laws. Division of assets varies by state. For instance, New Jersey is an “equitable distribution” state, meaning the court divides assets in an equitable manner, intended to be fair, but not necessarily equal. But a prenup will override state law, regardless where you reside. This means you, not the court, get to decide how your assets will be allocated should you divorce.
Protects you from your spouse’s debt. Many people enter marriage with sizable student loan and/or credit card debt. If you don’t have a prenup, you could be responsible for part of your spouse’s debt if you divorce! A prenup will protect you from assuming this financial burden.
Regardless of age or financial status, having a prenup is good common sense for everyone. Why not begin your marriage with the peace of mind knowing that you and your spouse are protected?
If you are engaged to be married, learn how a prenuptial agreement can safeguard your future — and peace of mind. Our highly experienced attorneys at Weinberger Divorce & Family Law Group, LLC can work with you to answer all your questions. Call us at 888-888-0919, or click the button below.