Many couples think about the potential that something could go wrong in their marriage, leading to a divorce. It’s an uneasy but logical thought, which leads people to consider what safety precautions they can take to protect themselves and their assets in a divorce.
There are several ways people can safeguard their assets before and after marriage. People, typically, create a written contract called a prenuptial agreement, alternatively, a postnuptial agreement. Here’s what you should know when setting the terms for your marriage:
What is a prenup and postnup?
A prenup is a legally written agreement between two people before marriage that intends to outline each couple’s obligations to each other. This legal contract may discuss property division, savings, retirement benefits and alimony. Many people fail to make a prenup before their marriage is legally bound, however, couples still have a chance to discuss marital obligations.
If you and your spouse don’t make a prenup before marriage, you have the option to make a postnup. Postnups are only ever made after marriage and have the benefit of renegotiating marital obligations. In other words, you can protect a business or inheritance acquired after marriage or amend alimony with a postnup.
Who gets marital asset protection?
It’s commonly believed that prenups and postnups are only for the rich. High-asset couples bring together many assets in their marriage, so it’s reasonable to believe that these couples need it the most – but that’s not entirely true. These legal documents are tools that may save anyone money and shorten the divorce process.
Does asset protection lead to divorce?
Have you ever heard that prenups and postnups lead to divorce? This may be one of the biggest misconceptions about marital asset protection. Some people, conversely, believe that nothing can ever go wrong in their marriage so a prenup isn’t necessary. Other people believe that just the slight mention that they could experience marital problems leads to divorce, however, there’s no likely evidence this is true.
Divorce can happen suddenly and unexpectedly. The legal paperwork you put together now could save you in the future.