What motivates people to write a prenuptial agreement?

On Behalf of | Dec 20, 2022 | Divorce, DIVORCE - Divorce, DIVORCE - Prenuptial Agreements |

The main reason couples sign a prenuptial agreement is to protect property that a court might otherwise split up in a divorce. However, different couples have varying needs. You may find that you want to draft and sign a prenup to address a specific issue.

Smart Asset explains different situations in which someone may want to sign a prenuptial agreement before tying the knot.

Protection from debt

It is possible that your spouse will bring a large amount of debt into the marriage or will accumulate debt as your marriage progresses. In the event of a divorce, you might end up on the hook for some of the debt even though you did not contribute to it. A prenup can assign debt to each spouse as well as the responsibility for paying it off.

Pass property to your children

If you have children from a prior relationship, a divorce might divert some of your property to your spouse instead of your children. With a prenup, you could establish that your children will receive specific assets in the event of your divorce or death.

Protect your business

A prenuptial agreement can also give you peace of mind when it comes to a business you own. You can make sure that your business remains separate property so your spouse cannot claim any of the value of your company. This reduces the risk that you will have to sell your business so your spouse can cash out his or her share of your company.

The varying uses of a prenuptial agreement make it a flexible document that many couples may use to control what happens to their property if the marriage does not work out.