It’s a common misconception that couples who enter into prenuptial agreements are anticipating a divorce. The reality is that approximately 50 percent of marriages in the United States end in divorce, and prenuptial agreements serve as a sort of insurance policy that acts as a safeguard, just in case.
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What are they?
Prenuptial agreements are contracts that govern how you and your spouse will divide assets if you get divorced in the future. Also, things like spousal support, child support and marital property are all defined within prenuptial agreements.
A prenuptial agreement allows you to set the financial terms of a potential divorce before the marriage, rather than relying on the legal system afterwards. Divorced couples who do not have a prenuptial agreement and cannot come to a property division agreement end up in litigation, which can be a lengthy, costly process.
Why Get a Prenuptial Agreement?
Protect Premarital Assets
Prenuptial agreements dictate exactly how premarital assets should be divided in case of a divorce. This helps to safeguard property, the interests of children from a previous marriage, protect a business owned by one spouse and so much more.
Negotiate Financial Security
By setting an agreement before the marriage, both spouses are able to negotiate their respective financial futures. This works for a wealthy spouse who wants to protect their assets, as well as a less wealthy spouse who wants the promise of financial assistance if the relationship comes to an end.
Avoid Costly Divorce Disputes
As an experienced divorce law firm, KLG Law understands just how costly and complicated the divorce process can be. Prenuptial agreements can eliminate many of the expensive disputes that arise as a result of divorces, such as equitable distribution and child support arrangements.
Protect Your Finances
Postnuptial agreements are similar to prenuptial agreements, except they’re negotiated after a couple is legally married. They don’t necessarily signify that a couple is gearing up for a divorce. However, they do signify that each spouse takes their financial future seriously and would like to protect it, just in case.
What Are They?
Postnuptial agreements allow each spouse to protect their separate assets in case of a divorce. These agreements are intended to address financial rights and obligations, as well as legal responsibilities for each spouse, which will simplify the divorce process should it ever occur.
Why Get One?
Circumstances Have Changed
One of the most common reasons that couples enter into postnuptial agreements is that life circumstances have changed considerably since their marriage. For example, one spouse may have started a business, acquired property or money or otherwise amassed significant wealth.
Helps Financial Planning
Postnuptial agreements dictate how assets should be allocated after a divorce. This allows you to preserve your financial plan. Without a postnuptial agreement, divorce can lead to unpredictable financial consequences.
You Didn’t Have a Prenuptial Agreement
Since they do virtually the same thing as prenuptial agreements, couples often seek postnuptial agreements several years into their marriage. Young, engaged couples who haven’t generated substantial wealth might not see the need for a nuptial agreement until later down the line.
Contact KLG Law Today
KLG Law has over 13 experiences helping couples develop prenuptial and postnuptial agreements that help secure each individual spouse’s financial future. Contact KLG Law today.