A prenuptial agreement is a contract between two individuals who intend to marry. A prenup is designed to clarify financial issues in the event that the marriage fails. There a number of primary prenuptial agreement benefits.
Protect Rights in a Divorce
One of the prenuptial agreement benefits is that the contract protects the rights of a parties in a divorce. The most common example involves a person who possesses significant assets who intends to marry a person of lesser financial worth. On the other hand, a prenup is also designed to protect a person of lesser financial means as well. Typically, a prenuptial agreement sets forth what both parties are entitled to in regard to assets and financial considerations if a marriage fails.
Address Property Distribution
One of the common sticking points in many divorce cases is property and debt distribution. A great deal of time, energy and money (in the form of attorney fees) can be expended on addressing property issues.
Through a prenuptial agreement, a general framework is established regarding the manner in which the assets are to be dealt with if a marriage fails. Provided the prenuptial agreement is properly prepared and executed, the parties are bound by these provisions as they would be with the contents of any type of contract.
Protects a Business
A prenuptial agreement is particularly helpful if one or both of the people intending to be married owns a business. Through a prenuptial agreement, the manner in which a business and its assets are dealt with in a divorce is set forth and agreed to in advance of the marriage by both parties.
Lessens Conflict During a Divorce
Divorce is not only a potentially legally challenging but also an emotionally challenging experience. Another benefit associated with a prenup is that it provides a means through which conflict during divorce is lessened. A whole array of financial issues potentially can be taken off the table in divorce proceedings through a prenup, which eliminates matters that can cause emotions to flare.
Hire a Lawyer to Maximize Prenuptial Agreement Benefits
Because of the complexity and importance of a prenuptial agreement, engaging legal counsel to prepare the contract is crucial. Through the help of an experienced, talented attorney, the benefits associated with a prenuptial agreement are maximized for both parties to the prenup.