A written contract that includes details of ownership of a couple’s individual assets is known as prenuptial agreement. It is also sometimes referred to as premarital agreement and this contract is entered into by a couple before their marriage is held. The purpose of this agreement is to settle financial matters in case the marriage fails or one of the partners dies.
In order to answer, what is a prenuptial agreement, consider the pros and cons of such an agreement to understand it better.
Here you will learn whether a prenup is required in your case or not.
In addition, we will look at why such a document is needed in the first place and what are some of its drawbacks.
One of the major drawbacks is that it serves to kill the romance between the couple. But if they are sensible enough, they may view it just as a legal proceeding that has no meaning unless and until any undesirable event occurs.
Why Does a Couple Need a Prenup?
The divorce rate in the US is surprisingly high for first marriages. Despite this high percentage, couples that are getting married do not want to bring up the topic of divorce before they tie the knot. However, the prenuptial agreement exists to safeguard them both with regard to legal complications in the event of a divorce.
Sometimes people get into trouble with the creditors after getting divorced and therefore a prenup may also specify how either partner would be responsible for the debts.
It has been observed that prenups are more common in second marriages. This is because both or either of the parties already have had a bad experience regarding the division of assets and liabilities, and they don’t want to repeat the mistake of not having a prenup.
It is therefore highly recommended to discuss this issue with your partner before you get married and this is why a couple needs to sign such an agreement.
What is a Prenuptial Agreement – Consider the Pros and Cons.
A prenuptial agreement is not necessary in all cases. However, when both parties have significant financial assets, having one becomes inevitable. If divorce happens, not having a prenup can damage your credit tremendously. The couple may also decide to mention in the agreement when exactly it will become invalid.
This is also known as a sunset clause and on that date if the couple is still married, they will become the lawful owner of their respective assets. There are many benefits of a prenuptial agreement like we discussed in the previous section. But at the same time, there are some drawbacks as well that need to be brought to light.
If a prenup is prepared with proper legal assistance, it may become a powerful tool later on. However, if proper attention is not given to its clauses or statements, the court of law may consider it invalid and useless.
This is one drawback that couples need to keep in mind before they decide to have such a document or contract ready. It is recommended to seek the help of a lawyer to draft a prenup in order to avoid issues later on.
Many states already have comprehensive divorce laws and therefore a premarital contract or agreement may only serve to complicate matters. A family law attorney is better able to explain whether you need a prenup or not. In some cases, such a legal document may favor a partner more than the other.
Nobody wants to end up with less than they deserve simply because they signed a document that served to favor their spouse. This would be unfair to one of the partners and therefore it’s important to study all the clauses of a prenup before you sign it.
A prenup does not include clauses related to the custody of a child, child support and other legal matters. It only contains details of financial proceedings in the event of a divorce, separation or death. To handle these matters, legal proceedings would still need to be carried out. And because of this reason, some couple may find prenuptial agreement totally unnecessary and waste of time.
When a couple is ready to tie the knot, all they think about is to spend the rest of their life together. Never does the idea or possibility of divorce or death cross their mind. However, life is quite unpredictable and when such an undesirable event does take place, the first and foremost issue that many people face is related to the financial matters.
Prenups are not meant to destroy marriages as common perception goes. They are designed to keep both parties safe and financially secure in case of an undesirable event. However, there are both advantages and disadvantages of such a legal document and everyone must be aware of these pros and cons to proceed. A prenup can definitely help in saving time and money when divorce happens because termination of marriage requires not only hundreds and thousands of dollars but also a whole lot of time.
A prenup can also save couples from fighting a lengthy battle over marital property. And most important of all, a prenuptial agreement can protect both partners from unnecessary debts.
When we explore what is a prenuptial agreement, consider the pros and cons, we find out that there are some drawbacks to this legal process. Most couples see it as a weapon to destroy their romantic relationship. Even before they tie the knot, they are forced into thinking about divorce and other undesirable circumstances.
Moreover, at times it might not be needed at all because there are divorce laws in every state that handle the issues of property or asset division. The document may favor either one of the partners more but seldom would they understand at the time of signing the contract. These are some of the disadvantages of a prenuptial agreement that you need to keep in mind.
All in all, if you want to be legally safe in the future, it is recommended to have such a contract in check and have complete peace of mind.
Also read the article: What Is a Good Marriage Relationship?