Even the healthiest marriages can experience friction, tension and resentment. Couples may find a solution to their marital issues by getting a divorce. A lot happens during a divorce. One of the main things couples have to discuss is asset division.
Many people don’t want to get a divorce, but they understand it’s a possibility. Individuals who have a high net worth may search for strategies to safeguard their assets. While people may wish to take the word of their spouse, people often find more security through legal contracts.
One type of legal arrangement people may use to protect their assets is a prenuptial agreement. Here’s what you should know:
What is the benefit of a prenuptial agreement?
A prenuptial agreement (prenup) is a legal instrument that, in the event of a divorce, specifies how assets will be split. Before getting married, a prenup is made.
Prenups have many other uses. For instance, a prenuptial agreement may be utilized to support an estate plan and distribute assets. This may be especially useful if someone wishes to secure an inheritance for children from a prior marriage.
A prenuptial agreement could also include alimony. If a marriage dissolves, one spouse may be required to pay the other alimony as a kind of financial support. This is especially advantageous for those who did not have a job during their marriage.
What if you don’t make a prenup?
A prenup cannot be created once two people are lawfully married. If someone believes it’s important to their marriage to have a prenup, then they may consider making a postnuptial agreement.
A postnup is very similar to a prenup but it’s made during a marriage. Postnups are also often used to revise the terms of a prenup.
People who are considering their prenup and postnup options may benefit from reaching out for legal help.