Many people believe that they’ve finally found their one true love. But, finding the person you’re going to spend your life with shouldn’t stop you from making a prenuptial agreement.
Simply speaking, a prenup is a legal document that can help resolve a divorce. Just over a decade ago, there was nearly a 50% chance that couples would go through a divorce. While the number has dropped to around 39%, that’s still a lot of people getting divorced.
As such, creating a prenup is only realistic. What are the benefits of making a prenup? Here’s what you should know:
Prenuptial agreement
As mentioned above, a prenup can help smooth the divorce process and may prevent expensive and spiteful court battles. It’s a document that’s made before marriage, which, typically, helps determine how assets are divided if there is a divorce.
Many couples agree that a prenup should allow premarital assets to return to their original owner. While marital assets may be divided fairly.
Another benefit of a prenup is alimony. Alimony is financial support given from one spouse to the other so they can continue their quality of life after divorce. Some alimony agreements give financial support for a fraction of the length of a marriage. In other words, a four-year marriage may, for example, give two years of alimony.
Postnuptial agreement
The problem with prenups is that couples can only make one before marriage. Once a marriage is officiated, couples can’t make a prenup. However, couples can still make a postnuptial agreement, a similar agreement made after marriage.
Many people make postnups even if they have prenups. A postnup can replace a prenup and provide updated terms on a marriage. This can help people safeguard assets that they have during a marriage. For instance, a spouse who inherited assets or started a business may want to ensure they keep these assets if there’s a divorce.
Prenups and postnups may not seem all that romantic. However, the reality is that you’re safeguarding your assets in a nation with high divorce rates. A well-crafted prenup or postnup may be the difference between financial ruin or living life comfortably after a divorce.
