The Pros and Cons of Prenuptial Agreements
Celebrities usually were the main users of prenuptial agreements in the past, but that is not the case nowadays. Things have certainly changed in the last few years and more couples from all income levels are deciding to have a prenup before tying the knot. We’re going to discuss some of the pros and cons of prenups that you should consider before saying ‘I do’.
- The protection of separate property
Without a prenup, state laws will determine ownership of properties and who will get what in case of a divorce. A prenup allows couples to make property and real estate decisions in a prenup regardless of the state law. No only is property protected that is already owned but property that might be acquired during the marriage can also be protected with a prenuptial agreement.
- Business protection
If you own a business or professional practice prior to marriage, a prenup can protect that business and make sure that your spouse has no control of that business in case of a divorce.
- Limit the amount of spousal support
A prenup can limit the amount one spouse needs to pay the other in case of a divorce for spousal support.
- Establish expectations
In case of a divorce, a prenup can help couples separate on ‘good’ terms. Since most of the details are already laid out in the prenup, a divorce should go fairly smoothly.
- Protection for children
A prenup is especially important for older couples that might be entering into their second or third marriages. Children from prior marriages can be protected with a prenup so that they have rights and can inherit assets in the event of a death or divorce.
- Debt liability
Creditors can come after both spouses even if it is just one that is in debt; a prenup can help limit your debt liability.
- Lack of trust/love
Since you’re starting the marriage off with a contract, many people think that a prenuptial agreement indicates a lack of trust.
- In case of a death, a spouse can take away your right to inherit his/her estate.
- In the event that the value of your spouse’s business increases during the marriage, the prenup can deprive you of your share of that even if you directly contributed to the success of that business’s growth
- In case of a divorce, the spouse with low or no income can find it difficult to sustain the lifestyle they are used to.
- These agreements are usually made during the ‘honeymoon’ phase of relationships, where couples are blinded with love and may make decisions not in their best interest.
Do you have any questions about prenuptial agreements or divorce? Please give our law firm in Wauwatosa a call at 414-259-9300 and we’ll be happy to speak with you.
Posted on: Monday, July 6th, 2015