Once considered a contract for the wealthy, marital agreements are becoming more commonplace, with couples of all socioeconomic backgrounds retaining prenuptial or postnuptial agreements. Family law and divorce lawyers are adept at executing marital agreements, which are akin to insurance policies. Prenuptial and postnuptial agreements define marital and individual property, offering peace of mind. The benefits of marital agreements far outweigh the emotional awkwardness of preparing the contracts. Negotiating and signing marital agreements is an exercise of due diligence.
Protecting Financial Interests in the Event of Divorce or Death of a Spouse
Some find prenuptial agreements to be unromantic, foreshadowing divorce. However, it is sensible to sign one as they provide assurances of financial security. In the event of divorce or the death of a spouse, prenuptial agreements are cost and time effective. Prenups help the parties circumvent long, expensive court battles in a divorce. Prenuptial agreements give credence to the court to what was and is intended between both parties. They also provide the couple with a reality check and provide an opportunity for spouses to discuss finances before they walk down the aisle. It is prudent for engaged couples to sign one. Prenuptial agreements safeguard individual property, offering:
- Protection of family heirlooms
- Protection of family businesses
- Protection of trusts
- Protection of inheritance
- Protects future assets
- Protection against or for alimony
- Protection from spouse’s debts
The Benefits of a Postnuptial Agreement
Postnuptial agreements are similar to prenuptial agreements but are created during the marriage. Life can be unpredictable, and a postnuptial agreement is a legally binding contract that outlines the party’s wishes in the event of a divorce or death. If a prenuptial agreement was never drafted, it is beneficial for spouses to secure a postnuptial agreement.
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