Most of us are already aware of what a prenup is all about. But even today, many people fail to realize the true purpose of this agreement and its benefits.
A prenup is a well-documented agreement that sets a solid foundation for a couple to start a happy future together.
This post will highlight why prenups are so important by giving the top reasons why a married couple should get a prenup.
Why a Prenup is Important
Prenups are important because they set expectactions between spouses, they protect your assets, they streamline the divorce process, and they create a sense of clarity/ peace of mind for people when entering into a marriage.
Top 10 Reasons Why People Get Prenups
A prenuptial agreement is a great way of outlining the division of assets, finances, and responsibilities if a couple gets divorced. That’s a positive way to prevent future conflicts or a lengthy and ugly divorce.
A prenup also includes details about the status of different assets and guidelines about how the couple would divide everything after their marriage ends.
If you are still unsure why married couples need prenups, here are the ten reasons people get prenups.
1. Keep Future Income and Assets Safe
Many individuals wonder about future assets after marriage or divorce. The simple answer to their queries is that a prenup can secure their assets. This agreement can help both parties lock their financial assets by defining the rules for asset distribution.
The truth is that most people even prefer a prenup when they don’t have any assets.
Future income earned during the marriage may include rental property income, bonuses, etc. Addressing these matters before marriage can prevent both individuals from experiencing unfortunate circumstances.
2. Debt Management
Another reason people usually go for prenups is to shield themselves from their partner’s debt. Prenuptial agreements provide details of debt ownership in case of a divorce. This information determines who is liable for repaying debts incurred during and before marriage. Couples can feel relaxed after knowing that they will not be responsible for each other’s loan debt or online bills post-marriage.
3. Protect Businesses
Do you want to protect your business after marriage? Unfortunately, a business is not always safe during a divorce. Why not add it to your prenup? In a prenup, you can declare your company (or potential businesses) as separate property. This may provide you with peace of mind and financial security.
4. Clarify Spousal Support
These agreements provide detailed information about alimony (i.e. spousal support) in a divorce. Some people, for example, may choose to forego spousal support entirely or leave it up to a judge to decide. Others may include a support cap.
5. Outlining Financial Responsibilities
This agreement can list financial obligations during the marriage. For example, will you and your partner share a joint bank account? If so, what expenses will be withdrawn every month? What will be deposited? These are the type of financial responsibilities that may go into your prenup.
6. To Include Infidelity Causes
Typically, couples do not include infidelity clauses in prenups despite it being a very popular clause among celebrities. An infidelity clause basically says “no cheating” but if you do cheat, you have to pay the other person. While including an infidelity clause may render your entire prenup null and void, some states may allow couples to include this clause. Hence, the infidelity clause remains a popular part of a prenup. Most people, especially celebrities, continue adding adultery clauses in their prenups. This popular lifestyle clause typically covers extramarital affairs.
7. To Financially Protect Your Children from Another Relationship
When a person has children from a previous marriage or relationship, they should stipulate their prenup to ensure their hard-earned income goes to their children rather than an ex-spouse. People who have been divorced in the past may be especially keen on protecting assets, as they may already have witnessed the consequences of asset division in a divorce and understand how their partner may eventually take future money away from their children.
Some people, for example, may add a death clause in their prenup, which refers to estate planning documents. A death clause can say, “all of my separate assets shall pass through my estate.” Then, you’ll need to make sure your estate planning documents award your separate assets to your children. However, remember that state rules on estate planning can vary and may only apply in selected states.
8. To Prevent an Ugly Divorce
Some people dread the ‘D’ word (divorce) because it’s emotional and time-consuming. Another reason why a prenup is beneficial is because it can take care of some of the concerns which arise in the event of a divorce.
A prenuptial agreement allows you to decide on several major divorce issues, including debt division, asset distribution, alimony, etc. before the divorce ever takes place.. The divorce process becomes considerably easier after clarifying these issues.
Without a prenuptial agreement, a couple may waste a lot of money, time, and energy dealing with these issues.
9. To Maintain Confidentiality
Most people want to protect their privacy with a prenuptial agreement in the digital era. A confidentiality clause lets you keep your prenuptial agreement specifics or other personal information private. Assume you have a prenuptial agreement-specified trust fund or business you do not want the public to know about. A confidentiality provision may legally prevent your spouse from disclosing this information.
10. To Know About Your Partner’s Finances
If you have ever wondered what is hiding behind the financial curtain or how much money your potential partner has, a prenup can help you uncover the truth. You can learn about this information through a prenuptial agreement’s financial disclosure process, which requires full and equitable economic sharing.
Final Thoughts
Divorce battles can cost you thousands of dollars. Imagine dealing with legal attorney’s fees and court costs. Creating a prenuptial agreement is not a time-consuming procedure with state-compliant platforms like HelloPrenup. The agreement can strengthen your connection with your future spouse by encouraging conversation. A prenup allows you to set the framework for responsible financial management before the wedding.
Distant Wedding has partnered with HelloPrenup, making it easier for couples to create a prenuptial agreement without hassle.
Attorneys across the nation have reviewed, approved, and partnered with HelloPrenup. According to these experienced legal experts, it is the most efficient and affordable way to get a prenup!
