Premarital agreements (also called prenuptial agreements or “prenups”) are not just for celebrities.
If you are planning your wedding, should you also plan on a prenuptial agreement? Prenuptial agreements establish the property and financial rights of each spouse in the event of a divorce. Obviously, you are not thinking about a divorce as you are planning your dream wedding, but unfortunately, about one half of all marriage in the United States end up in divorce.
If you are bringing personal or business assets to the marriage, you can definitely benefit from a prenuptial agreement. The agreement is simply a contract between the parties. The document lists an inventory or pre-marriage assets and liabilities that in the event of a divorce will be assigned to the party that originally incurred the debt or acquired the asset.
The agreements can also include stipulations regarding future income from a business or any other assets will likely be accrued throughout the duration of the marriage. A prenuptial agreement can address future spousal support payments in the event of a divorce and/or separation.
A prenuptial agreement allows you to do anything with your assets, liabilities and income. The only things that you cannot contract around in a prenuptial agreement are child support, child custody and visitation.
If you are bringing separate property assets into the marriage, such as retirement funds, inheritance money, real property, trusts, and you want these assets preserved in the event of a divorce, contact an attorney regarding a premarital agreement.