Since some people have the opinion that creating a Prenuptial Agreement showcases distrust between partners, prenups are often a source of contention between couples.
However, the fact remains that it is a useful document for couples who have a large number of individual assets, and/or want to protect other aspects of their lives in case of divorce or separation.
Couples who are thinking of getting married can also use a Prenuptial Agreement to decide what happens to the assets they obtain during the marriage should they choose to end their relationship.
Here are three important things that you should include in your prenup.
1. Assets and Debts
A Prenuptial Agreement is a good way for you and your partner to maintain separate control over personal assets or property that you accumulated before you were together.
For instance, if you own a company, chances are that you wouldn’t want to risk losing your business in the event of a divorce or separation, so adding your business as a separate personal asset in your prenup would be a good idea to help prevent that from happening.
Another example could be if you wanted to make sure a priceless family heirloom stays in your family— you would list that item in the prenup as a separate personal asset as opposed to having it be considered joint property.
2. Dependent Children
If you have children from a previous relationship or with your current partner, a prenup allows you and your spouse to determine how those children will be taken care of financially in the event of a divorce or break-up.
Although you can’t include things like custody, visitation, or child support in a prenup, you can generally use it to determine how property and assets will be inherited by children, so if there is a need to split assets and property up in a specific way (one child inherits a specific property or asset) then you can do so.
3. Protection of Your Estate Plan
In addition to choosing how property and assets will be inherited by your children, a prenup can be helpful in protecting separate personal assets and property from being mixed into the ones obtained during the marriage. This allows you to choose what your partner will receive as part of your estate.
Using a Prenuptial Agreement
A Prenuptial Agreement is a useful document for couples for a variety of reasons, including providing financial and personal peace of mind. It’s never a bad idea for couples who are planning to get married to consider using a prenup to outline how their property and assets would be divided in the event of a divorce or break-up.