The number of people opting to enter into prenuptial agreements has been on the rise in recent years. There are many factors that affect this and it is clear that what had long been thought of as necessary only for the very elite can now be beneficial to everyday couples.
While the thought of a prenuptial agreement may seem at odds with planning a marriage, the reality is actually quite different. Eliminating areas for discord within a marriage may be one of the best ways to create a happy and solid union.
Situations ripe for prenups Changes in society have led to many new circumstances that make the use of prenuptial agreements very helpful indeed. Following are some of the reasons that people opt for these marital contracts:
- A need to protect business assets : When one member of a couple has an interest in a business, the ability to protect the business assets and keep them separate from the marital estate can be a critical way to also protect the business itself. When partners are involved, the need to do this becomes even more important. If both members of an engaged couple are involved in the same business, it could be useful to identify an up-front delineation of involvement to avoid unnecessary problems later on. These calculations can be amended over time as the business evolves if need be.
- A complement to retirement and estate planning : Especially for couples that get married at later stages of life, looking at a prenuptial agreement as a means of estate planning and protecting retirement assets is one of the wisest things that can be done. A marital contract can help to identify what will happen to select assets upon the death of one or both spouses. It can also preserve retirement funds by dictating a desired allotment of account monies.
- The wish to provide for existing children : When getting married with minor children already in existence from either a prior marriage or relationship, a prenuptial agreement can help to secure a financial commitment for those children and prevent the loss of prior agreements based upon a change of circumstance.
These are just some examples of circumstances that make a prenuptial agreement far more than simply a way to protect oneself in the event of a future divorce.
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Before embarking upon a premarital contract, it is best to discuss your needs with a family law attorney who works with these agreements on a regular basis. This will help you and your future spouse to ensure that your document is created in the best way possible so that it can provide the protection you both desire.