Marriage is a beautiful union between two people, but the reality is that not all marriages last forever. It is important to be practical and prepared for any potential future events, which is why many couples choose to enter into a prenuptial agreement.
A prenuptial agreement, commonly known as a prenup, is a legal document that outlines and protects the assets and liabilities of both parties in the event of a divorce or legal separation. The purpose of a prenuptial agreement is to help ensure that the division of assets and liabilities is fair, clear, and agreed upon by both parties ahead of time.
While prenuptial agreements were once seen as something only wealthy couples needed, they are now becoming more common among couples of all income levels. In fact, according to a survey conducted by the American Academy of Matrimonial Lawyers, 62% of divorce lawyers have seen an increase in the number of prenuptial agreements among millennials.
There are many reasons why couples may choose to enter into a prenuptial agreement. One of the most common reasons is to protect assets that were acquired prior to the marriage. For example, if one spouse owns a home or a business, a prenuptial agreement can ensure that those assets remain with that spouse in the event of a divorce.
Another reason to consider a prenuptial agreement is to establish financial expectations and responsibilities during the marriage. Couples can use a prenup to clarify who will be responsible for certain expenses, such as household bills or debts. This can help avoid confusion and disagreements down the road.
Additionally, a prenuptial agreement can also protect spouses from each other’s debts. If one spouse enters the marriage with significant debt, the prenup can establish that the other spouse will not be responsible for that debt in the event of a divorce.
Importantly, a prenuptial agreement cannot include terms related to child custody or child support. These issues must be decided by a court, as they are based on the best interests of the child.
Overall, a prenuptial agreement can provide peace of mind and security for both parties entering into a marriage. It can help avoid battles over finances and assets in the event of a divorce, which can be a stressful and emotional time. By entering into a prenuptial agreement, couples can ensure that their financial futures are protected and established in a fair and agreed-upon manner.