(My latest article posted on my website.)
Some people in the Colorado Springs area enter into their marriages with assets of their own. Other couples may be just starting out, and they build their wealth as they build their lives together. In either case, signing a prenuptial agreement may help them to protect themselves, and each other, in the future. Prenuptial agreements are legal contracts between spouses, which set forth what happens to their assets in the event of a divorce or death.
Planning for the worstFew people want to think about the possibility of their marriages coming to an end before they have said their vows. As Business Insider points out, however, financial issues often lead to tension and animosity when couples are divorcing. This includes deciding how their assets will be divided, as well as if one spouse will receive spousal maintenance. By discussing and planning for such a situation when they are most in love and in tune with each other may help make the process easier for them down the road. This may help them to avoid the types of divorce issues, which often draw out the settlement process.Dealing with debtsMost people think of prenuptial agreements as being a tool for the very wealthy to protect their assets. When couples divorce, their debts, in addition to their assets, must be divided. Like the division of assets, the division of debts often leads to divorce issues. According to Business Insider, these legal contracts can also be used to address each spouse’s financial obligations in the event of a divorce. Couples may use their prenuptial agreements to specify who will be responsible for which debts. This may be especially useful in situations when one or both spouses enter into their marriage with college or credit card debts, or previous child support obligations.Planning for the kidsParticularly if they have been married before, or are getting married later in their lives, some spouses enter into a marriage with children from previous relationships. A new marriage could put the inheritances of these children in jeopardy due to divorce or death. In such situations, if the couple decides to divorce, all, or a portion of, their children’s inheritances may be subject to the property division process. Should the spouse with children pass away without an estate plan in place, all of their assets may go to their partner during the probate process.Prenuptial agreements can be used to specify how assets should be divided in the event of a death, as well as a divorce. This may help people to ensure that their children from prior relationships are cared for. By protecting all, or a portion, of the assets that they enter into a marriage with, people may help keep the inheritances they intend for their children in tact through divorce or death.Consulting with an attorneyPrenuptial agreements may not be right for every Colorado couple, but they can be a useful tool to give people peace of mind as they begin their lives together. Thus, those who are planning their nuptials may consider speaking with an attorney to discuss whether a prenuptial agreement may be useful in their case. A lawyer may explain their options, and help them to draw up a thorough prenuptial agreement that will protect them, and their future spouse.