Before getting married, some couples decide to sign a prenuptial agreement. This legal document outlines what would happen to assets in the event of a divorce.
Many people think that a prenup agreement is only for those with a lot of money. However, this is not necessarily the case, and everyone should research what its purpose is and what it entails.
Purpose of a prenuptial agreement
U.S. News and World Report discusses there are various reasons to have a prenup. People entering the marriage with significant assets or debts, who own a business or who work in a family business should absolutely have a prenup agreement. People from previous marriages and who have children from those marriages should also have an agreement.
Even people entering the marriage with no significant assets may want to consider having an agreement. It is a smart idea for women, especially if they plan on taking time off of work to raise children. Because a prenup agreement outlines not only asset division, but also other provisions, having one can save time and money in the event the marriage does come to an end.
What to include in an agreement
FindLaw discusses some of the common elements of a prenuptial agreement:
- Property and asset division
- Protections to keep family business or property
- Protections against other spouse’s debts
- Spouse responsibilities descriptions
- Estate planning protections
- Provisions to provide for children from other relationships
There are limits as to what you can include. These include waivers for alimony rights, child custody decisions, personal preferences, provisions that encourage divorce and provisions regarding any illegal activities.