Marriage is one of the biggest commitments that you’ll ever make in your life. When you decide to get married, you must do so with the knowledge that a divorce can ruin you. Most people don’t realize that prenuptial agreements aren’t just for rich people or celebrities – they’re for everyone.
An increasing number of people are having prenuptial agreements created by lawyers to help protect their assets.
While this may sound unromantic when you’re starting your life with another person, it does make sense to protect yourself in case of a divorce. In the worst-case scenario, a prenuptial agreement will allow you to move through your divorce quickly and keep all of your assets. In the best case scenario, you’ll never have to worry about your prenuptial agreement because you’ll be married to the person for the rest of your life.
An agreement can save you a lot of money and heartache if divorce does occur. There are five situations when a prenuptial agreement makes sense:
1. You Own a Business
Protecting your company’s assets should be your top priority to the company. This will ensure that your spouse is not entitled to the company itself, a portion of the company or even the increased value of the business during your marriage.
You may include that your spouse will receive other assets in lieu of the business if you wish.
2. Your Own Assets That You Want to Protect
Do you own any assets that you want to protect? This can be a family heirloom, artwork or even collectibles that you own. You may want to do this for your retirement fund if it is substantial when you get married. Protecting your assets in such a way that they do not become marital property can be done through a prenuptial agreement.
3. You Have Children from Another Relationship
Children from another relationship should not be disinherited when you die. A prenuptial agreement offers an extra layer of protection in the event that you die and you would like your children to receive some of your assets.
4. Your Spouse Is Heavily in Debt
The number of people in debt has increased significantly in recent years. Average student loan amounts are $28,000, and according to TransUnion, people maintain credit card debt of $5,300. A prenuptial agreement will protect you in the event that you get divorced because it separates debt clearly. If your spouse died tomorrow, you may be responsible for that debt without such an agreement in place.
5. Spousal Protection
We’ve discussed some very real protections for you, but what about your spouse? Safeguards can be put in place inside the prenuptial agreement that ensures your spouse gets something in return from you. For example, many spouses will work full-time while their partner goes to school.
If your spouse is putting their career on hold for you, they may require a prenuptial agreement stating that you will provide alimony or some form of financial compensation when the marriage ends.
This is a very smart addition to any prenuptial agreement.
Prenuptial agreements are catered to every couple’s unique situation, and it’s best to talk with your lawyer about your options.
The Micklin Law Group, LLC is a New Jersey law firm focusing exclusively on family law for men and fathers. Attorney Brad Micklin was recently named to The National Advocates list of Top 100 attorneys from each state. Brad has experience working with high asset divorce. You can read more on this topic by visiting our prenuptials blog. To set up a consultation, call 973-562-0100.