Everyone always supports saving time and money, but when it comes to your personal life, prenuptial agreements are the best. Romance killers? Protecting your assets sounds like a good idea on paper, and you don’t want to collect someone else’s debt, but it’s good to know the pros and cons of prenuptial.
Pros before marriage
Prenuptial processes generally depend on the status of the spouses in the marriage The beginning of marriage. Changing circumstances may cause a previously fair marriage to have adverse effects on one of the spouses. Be sure to Protect yourself and your assets If you feel it is necessary. Here’s a look at five prenup pros:
- Protects your financial assets
- You live in a community property state
- You expect to receive a large inheritance
- Leveling can help you
- It protects you from unexpected events
1. Protects your financial assets
One of the most important advantages of prenuptials is that they are meant to protect your finances in the event of a divorce or death. If you have a lot of investment in it Financial assets, you might want to look into one. Remember, if circumstances change, you and your spouse can sign an agreement after marriage, called a postnuptial agreement, and it is just as binding as a prenuptial contract.
2. You live in a Community Owned State
Some states, such as California, have laws regarding the division of marital property called community property laws. These royal laws are divided in two ways:
- Separate property – wholly owned by one spouse.
- Community property – it belongs equally to both spouses. All income received by either spouse during the marriage is joint property.
If you like the idea of pooling income and having assets together, you don’t need a prenuptial contract in the case of community property. By sharing income and assets, you decide everything with your spouse as a partnership. There are also opportunities for you to work within your state’s property laws that can be taken advantage of through a prenuptial agreement.
3. You expect to receive a large inheritance
You should consider prenuptial if you expect to receive an inheritance, according to family law attorney Damian McKinney, of McKinney Law Group in Tampa, Florida. “If you expect to inherit large sums of money from the family, it is always a good idea to have a prenuptial agreement to protect those assets in the event of a divorce,” McKinney said.
In community property cases, the money and property inherited during the marriage remain the separate property of the beneficiary spouse. However, if you confuse it with joint ownership, it may lose its character as separate property and be treated as joint property, owned equally between spouses.
4. Compromise can help you
You win some and lose some, right? Unfortunately, divorced couples often hold back from settling out of spite as they have to abide by legal documents and marital agreements.
Although you may be tempted to fight every battle that comes your way, agreeing to concessions can save you a lot of hassle and legal fee money when going through a divorce. As a bonus, your decision to compromise can encourage your spouse to do the same.
5. It protects you from unexpected events
When you think about a prenuptial agreement, friends may tell you that it’s better to fight early on about the prenuptial agreement than to fight later in an expensive divorce battle. But things are not always black and white.
While the goal of signing a prenuptial agreement may be to provide financial certainty, certainty is not possible when it comes to the future. It is impossible to anticipate all of the problems and financial configurations that you may encounter if or when your marriage ends.
negatives before marriage
In many cases, a prenuptial contract may not be worth the hassle of going through the paperwork or you may even feel like you are setting your marriage up for failure. Here are some prenuptial cons to consider:
- Takes the romance out of the wedding
- Your religious beliefs forbid divorce
- All you worry about is child support
- Your money is beyond the reach of a divorce
- You can’t afford it
1. It takes the romance out of the wedding
A prenuptial trick to consider is that there is absolutely nothing romantic about it. You understand very well that nothing lasts forever, but you must have thought of all of that during those previous happy days your marriage? If romance is more important to you than finances, the personal price you pay for prenuptial marriage may be too high.
2. Your religious beliefs prohibit divorce
If you and your spouse adhere to a religion that forbids divorce, the prenuptial agreement may not be so important to you. The prenup program deals with the division of property in the event of a divorce. Courts will not support these types of personal preferences in the prenuptial stage. Prenuptial agreements are intended to address financial issues.
Even the issues of separate versus community property relate to who will leave their property after a divorce. So, if you are determined to make your marriage last a lifetime, the prenuptial stage is an unnecessary and costly inconvenience.
3. All you have to worry about is child support
You probably don’t care about dividing the money with your spouse in the event of a separation. I am not worried about alimony or division of assets. But, if you want to have children, you must get child support if you are divorced and want to get an agreement about custody and parenting time.
This probably isn’t a complete prenuptial trick, but it does mean you can forget about the prenuptial agreement for this problem. You cannot decide child support or custody issues by prenuptial marriage.
4. Your money is beyond the reach of a divorce
If you get most of your income from a trust or similar legal instrument established before you got married, you may not need a prenuptial agreement.
In community property cases, property interests acquired prior to marriage are the separate property of the spouse. So, if you are the recipient of distributions from a trust or other fund or instrument created before marriage, the trust/retirement/pension funds are already set up as separate properties, and the funds received are also separate.
5. You can’t afford it
Getting a valid and enforceable prenuptial agreement isn’t cheap. First, each party must have an attorney—some state courts require this before a prenuptial agreement can be executed. This means that you will have two attorneys negotiating with each other, and they usually get paid by the hour.
If you don’t have money, you don’t have a prenuptial. It is not worth the cost to you, because you have no assets or income to protect. Instead of thinking about prenuptial, increase your salary.
Is Prenup worth it?
Many experts agree that the prenuptial stage is usually worth it. But this is not the case for everyone. Before making your decision, consider all the pros and cons of premarital sex and talk about it with your partner. Make sure you agree to the final selection.
Take the final
Court costs and the divorce process can add up. If your marriage doesn’t work out, you still have to pay alimony or spousal support. There are pros and cons to prenuptial depending on your current financial situation. In many cases, this may not be necessary, but a prenuptial agreement can protect your current or future assets and debts.
Caitlin Morehead Contributed reporting for this article.