The Advantages of Prenuptial Agreements

Prenuptial agreements were once a very sticky subject to bring up to a future spouse. However, as awareness has grown about how beneficial they can be for both parties, they are no longer a dreaded topic that must be avoided. Prenuptial agreements carry several advantages, and the goal of this article is to explore those benefits, helping you decide whether a prenuptial agreement is right for you and your future spouse.

Court Costs and Awards

Prenuptial agreements clear everything up before the individuals get married, leaving nothing to question. Therefore, in the event of a divorce, it is already determined where the property, assets and money go. This eliminates the need to dispute these things in court, saving the individuals money and stopping one spouse from losing money, assets and property that is rightfully his.

Protecting Your Children

If you have children from a first marriage that you would like to leave your belongings to after your death, a prenuptial agreement is very advantageous. Without one, your belongings legally go to your spouse, who can then decide whether to keep them or give them to your children. By signing a prenuptial agreement, you can ensure that your children receive the assets, property or money you want them to have in the event that you die before your spouse.

Heirlooms and Family Property

There are some items, businesses and heirlooms that are meant to be passed down within your own family. Prenuptial agreements can ensure that heirlooms and other property that should stay within your own family do so. A prenuptial agreement will prevent your spouse from being able to lay claim on items that should rightfully go to your children, your nieces and nephews, or other family members.

Business Matters

If you're a joint owner of a business, or are a partner of a business, a prenuptial agreement can protect your interests in the case of your death. For instance, you can state that your spouse will waive all rights and claims to any part of the business upon your death. You can also state that she is considered a "shareholder" of your part of the business and that the share must be purchased. A prenuptial agreement allows you to have your say when it comes to your business---even in the event of your death.

Stopping Creditors

Should you happen to marry someone who has a substantial amount of debt, a prenuptial agreement can prevent you from having to take that debt on as your own. Without a prenuptial agreement, your future spouse's debt and negative credit history can become your own.

Resources

• Wikipedia on Prenuptial Agreements