When mentioning a prenuptial agreement, many individuals think only about the financial side of this contract. However, this type of agreement affects not only your money.
The reality is that prenuptial arrangements (which are called “premarital arrangements” in some jurisdictions) could likewise deal with other important matters, such as distributing the tasks between two spouses during the marriage, taking care of children from a previous relationship and keeping family heirlooms in the family. Sometimes these point can be much more important than just defining assets division or spousal support after a divorce. Knowing the possibilities of a prenuptial agreement is an essential factor in your choice of whether or not to get one.
Right here are 4 main aspects why may need a prenuptial agreement.
1. You Want to Ensure Financial Safety For Both Parties
Obviously, a prenuptial agreement certainly brings a feeling of financial protection– specifically in cases where one spouse has much higher earnings compared to the other. On the one hand, the wealthy partner wants to protect his/her property as well as limit the amount and also period of spousal support in case of separation. On the other hand, the partner that does not have so many assets wants a guarantee of economic safety or financial support if their marriage finishes. The end outcome ought to be a sensible arrangement that provides security to both parties according to their specific requirements.
2. Your Future Spouse Has Substantial Financial Debt
One spouse bringing a lot of debt into the marital relationship is a rather common situation nowadays. Sometimes, the other spouse doesn’t even know about the financial debt of the other until they have actually got married. Don’t be afraid to raise this topic before the marriage – everyone has the right to feel confident about their future, especially when it hugely depends on another person. Of course, if the marriage ends, the other partner does not want to inherit their ex-spouse’s debt. A prenuptial agreement could limit the non-debtor spouse’s responsibility and also prevent creditors from seeking marital property to pay off the debt.
3. You Want To Protect Your Assets
A prenuptial agreement can be used to get around the laws regulating asset division and spousal support in some states (ask Chattanooga family attorneys if this is the case in Tennessee). The contract could define exactly how specific marital and non-marital possessions will be allocated when it comes to divorce. An excellent prenup can likewise sustain your estate plan. From professional experience of McKoon, Williams, Atchley & Stanley, PLLC family lawyers, asset distribution is much less challenging with a legitimate prenuptial agreement, so protect yourself and your assets from messed-up situations later on by signing one before marriage.
4.You Want to Protect Your Business
It’s a natural desire for business owners and entrepreneurs to protect their business they’ve contributed so much into. Divorce can threaten it – both financially and because of interference from ex-spouse (and ex-spouse’s lawyer). Without a prenup, the marital share of the business can be rather significant, and the non-owner spouse could end up with a considerable portion or even claim to it. This implies that business owner would be forced to buy out their ex-spouse’s share (which could have an extreme impact on the business’ capital) or put up with a potentially vindictive ex interfering in their business’ decision-making process. Developing and signing the detailed prenuptial agreement is vital for business owners; otherwise your business (especially if it’s a small or middle one) can occur under the threat of closing because of conflict or misunderstanding between you and your ex.
These are simply four of the several factors for creating a prenuptial agreement (or a post-nuptial agreement if you’re currently married). When the agreement is finished, you can feel confident that you have actually done your best to protect not only yourself, but also your spouse in case of future divorce.
At McKoon, Williams, Atchley & Stanley, PLLC, you will find a Chattanooga family law attorney who will guide you through all of your legal options and answer any questions you may have about how various decisions could impact your future and the future of your family. Don’t hesitate to contact us to find the solution to your issue.