Last week, we discussed some of the downsides related to prenuptial agreements. This week, we’re going to cover the upsides. Indeed, it’s precisely because of the numerous benefits associated with premarital agreements that spouses choose to draft and sign these documents.
Here are five of the most important things that spouses can expect to benefit from when taking the time to create a premarital agreement:
- Protect the inheritance rights of children from previous marriages
- Keep your business safe from the risk of being divided one day as a result of divorce
- Protect one spouse from the debts and financial liabilities of the other spouse. In some cases, this could assist two people who otherwise might not be able to get married as a result of one spouse not wanting to assume the financial liabilities of the other.
- Establish that you will be compensated for giving up a career in order to be a homemaker and help raise the family. Many stay-at-home parents do not realize the income-earning capacity that they are giving up by choosing to stay home with the children.
- Place limits on the amount of spousal support or alimony that one spouse may be required to pay
Like any legal document, the decision to enter into a premarital agreement should be weighed carefully. Future spouses will also want to ensure that both sides of the marriage are represented by separate legal counsel who assists them in reviewing and evaluating the fairness and terms of their agreements. In fact, failure to have legal representation like this could weaken the strength of the document in the future if it ever gets challenged.
Source: Findlaw, “Pros and Cons: Premarital Agreements ("Prenuptials"),” accessed March 09, 2018