Is a prenuptial agreement part of your wedding plans?
As we approach the traditional wedding month, there is a flurry of activities as happy couples contemplate their new lives. Apart from food sampling, marriage counselling, dress fitting, bridal showers and stag parties, some couples are having legal conferences about prenuptial agreements.
In this week's article, we will look at some of the positive aspects of signing a prenuptial agreement:
• It represents a commitment by both parties that could help to alleviate any concerns that the wealthier party may have that his or her partner is marrying them for their money.
• A premarital agreement may be ideal for couples entering a second or subsequent marriage who want to protect the inheritance rights of children and grandchildren from a previous marriage.
• For either party who has an interest in an established business, the agreement can protect that interest so that the business or practice is not divided and subject to the control or involvement of a former spouse upon divorce.
• If one spouse has significantly more debt than the other, the agreement can protect the debt-free spouse from having to assume the obligations of the other.
• In cases in which one spouse plans to give up a lucrative career after the marriage, the agreement can ensure that that spouse will be compensated for the sacrifice if the marriage does not last.
• The agreement can address more than the financial aspects of
marriage, and can cover any of the details of decision-making and responsibility sharing to which the parties agree in advance.
• The agreement can limit the amount of spousal support that one spouse will have to pay the other upon divorce.
• The agreement can clarify assets and identify ownership of them. It that way, a distinction can be made between separate and marital property.
• It can avoid complex divorces and save time and money.
• It can establish procedures and ground rules for deciding future matters.
• A prenuptial agreement is marital insurance. Discussing financial issues prior to marriage can prevent future pitfalls.
• They are legally binding and enforceable.
(Much of the information set out in this article was extracted from whnsolicitors.co.uk and family.Find law.com.)
Next week, we will consider the negative issues affecting the signing of a prenuptial agreement.
• Sherry Ann McGregor is a partner and mediator in the firm of Nunes, Scholefield, DeLeon & Co. Please send questions and comments to firstname.lastname@example.org.