Prenuptial agreements can be valuable for couples in Minnesota. There are oftentimes misconceptions associated with prenuptial agreements, what they do and do not do, and who they might be helpful for. In short, prenuptial agreements allow couples to determine property rights for themselves in the event they divorce at some point during their relationship.
Without a prenuptial agreement, state laws and the process of equitable distribution in Minnesota previously discussed in this blog will determine how the couple’s property is divided. The usefulness of prenuptial agreements for many couples is sometimes misunderstood. Property division absent a prenuptial agreement may lead to the division of property in a manner the couple did not intend and the sharing of assets and liabilities, such as debts, in a manner the couple did not intend.
Through prenuptial agreements, couples are able to protect the assets of each party; protect debts the parties enter the marriage with from being shared; clarify financial rights and responsibilities expected during the marriage; minimize costly and time-consuming disputes during a divorce, should one arise; and can also account for estate plans. Prenuptial agreements can also be helpful for parties entering a marriage that is not their first who have grown children or who are approaching retirement.
Prenuptial agreements can be helpful in many different situations and for many different couples. There are important requirements to be aware of to create a valid prenuptial agreement, so it is necessary to understand the process of creating a prenuptial agreement in addition to understanding their value for many couples.
Source: Family.findlaw.com, “Can Prenuptial Agreements Help You?” Accessed March 28, 2016