Why Having a Prenup Agreement Can Safeguard Your Future
The future is always unpredictable, which means that no one can foresee with accuracy what tomorrow holds. This uncertainty is why more couples are choosing to sign a prenup agreement before they walk down the aisle.
Perhaps this seems like a pessimistic thing to do, but it actually is eminently practical. It is a wonderfully easy way to ensure that the diamond ring that you inherited from your grandmother stays in your family. Additionally, your prenup can specify how the proceeds will be divided if the family home must be sold in the event of a divorce.
While a prenup is used to protect current assets, it also may be possible to draft the contract so that it may safeguard future assets. Such protection is possible only if the agreement is carefully drafted. Typically, future assets will need to be defined and described in great detail. If they are not, then the contract may be invalidated by the court when one party tries to enforce it against the other.
Another way that a prenup can safeguard your future is by including details about debts. For instance, if one partner incurs a huge load of education loan debt during the marriage, it can be spelled out in the prenup that this debt will be that partner's sole responsibility in the event of a divorce.
Similarly, the partners may want to define who will be liable for certain credit cards, loans or other debts if the marriage ends. This is simply wise planning on the part of the prospective spouses. No one wants to get saddled with a debt that does not belong to them, particularly in the wake of painful and expensive divorce proceedings. A heavy load of debt makes it difficult to move forward, and the person who incurred the debt reasonably can be expected to assume the responsibility for paying it.
Discussing how you will finance your future together before tying the knot will help to avoid conflict and allay any “surprises” in the future should either partner enter the marriage with certain preconceived expectations that may not have been discussed and addressed during your courtship. Of course, it is not possible to address every possible nuance and situation that could arise in the future, but having these tough conversations now and being clear about you and your partners’ philosophy around money can further safeguard your future together.
In addition, prenup agreements can be used to protect future inheritances as well as family property, money or trust interests of which you may be the owner or beneficiary, and ensure it will stay in the family in the event of a future breakup or upon your death.
Prenuptial agreements not only typically contain provisions addressing what happens with property in the event of a future breakup, but they can also provide what assets are transferable to your partner upon death as well as provide adequate financial support in such event.
Moreover, if you have children from a prior relationship, a prenup agreement is a great way to create clarity with your partner and protect your children and ensure that they are provided for as well.
And, if you or your partner have a pet, the agreement can contact provisions relating to their care and support.
It is advisable to involve a knowledgeable attorney as soon as you decide that a prenup agreement is right for you. In order to be legally binding, it is necessary to define many highly detailed components, making the right kind of experience indispensable to the process.
If you are still curious about your ability to safeguard future assets, contact the Sabra Law Group at (646) 472-7971. These experienced legal professionals place an emphasis on drafting a sensible prenup agreement that will protect your interests in any eventuality.