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Prenuptial agreements may resolve future property division issues

| Feb 19, 2014 | Property Division

Residents of Montgomery, Tennessee, understand the sense of financial security that comes from owning property. This financial security is especially important when a married couple decides to end their marriage and live separate lives. Since it becomes tougher to separate assets and debts in equitable shares after a lengthy marriage, equitable division of property at the time of divorce may prove to be one of the most stressful issues.

One way to handle this stress is by being prepared with the paperwork well in advance in the form of a prenuptial agreement. According to a recent report completed among the members of the American Academy of Matrimonial Lawyers last year, over 60 percent of those asked claimed that they noticed an increase in prenuptial agreements over recent years. Moreover, just over 40 percent of the also said that more women were asking for such agreements.

Having a prenuptial agreement does not necessarily mean that a person has an intention to divorce formed from the beginning of the marriage. However, it is a way for the spouses to have mutual security and understanding in matters related to finances. A prenuptial agreement gives both spouses a clear understanding of where they stand financially from the very beginning of the marriage.

In the event that a prenuptial agreement was not signed before a marriage, a couple may choose to sign a a postnuptial agreement. Although not a very common practice, postnuptial agreements can serve the same purpose as a prenuptial agreement in the event of property division at the time of the separation.

If one or both spouses consider a prenuptial or postnuptial agreement, he or she may wish to consult a lawyer. By doing so, a person can ensure that all marital property such as homes, automobiles, household goods, retirement assets and pensions, investments and business assets are protected and fairly distributed in the event of a divorce. The agreement can also ensure that debts such as home mortgages, car loans, shared credit card debt and independent loans are also shared evenly between separating spouses.

Source: Investment News, “Client’s got stars in his eyes? Insist on a prenup,” Liz Skinner, Feb. 13, 2014


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