Most Minnesota residents understand the concept of a marital agreement. A prenuptial agreement is signed by the spouses prior to marriage. The purpose of the agreements is to anticipate potential issues before a divorce becomes a reality.
Although many people understand the advantages of a prenuptial agreement, many people do not want to sign such an agreement. It is common that people who are about to get married do not want to jinx the marriage with a prenuptial agreement. However, if the couple thinks about the advantages, the spouses they may change their minds.
For example, if one of the spouses was married previously, that spouse may want to protect those assets so that the finances do not get complicated during the second marriage. If there were children from the first marriage, the parent may want to have a financial plan for those children; a prenuptial agreement can keep the funds separate to protect the children if the parent dies.
Another situation where sign a prenuptial agreement could be advantageous is when the two people who are marrying do not have equal money. For example, one person may have very valuable assets or that person may own a business. In that case, the person may want a prenuptial agreement to keep those personal and business assets protected in the event of a divorce. Similarly, if one spouse has large debts, the other spouse may want to sign a prenuptial agreement to avoid paying the other spouse’s debts.
Other reason for a prenuptial agreement is the wish to keep marital issues private; the prenuptial agreement can be a smart option when the couple has only been together for a short time; a prenuptial agreement is also useful if one of the spouses is either bad at financial planning or does not earn an income. In all of those situations, a prenuptial agreement can be very useful. If you about to get married and you wish would like to learn more about prenuptial and postnuptial agreements, you may consider retaining an attorney who is experienced at drafting prenuptial and postnuptial agreements.
Source: Huffington Post, “Everything You Need To Know About Prenups,” Ivy Jacobson, June 1, 2015