5 Important Ways Prenuptial Agreements Can Benefit You (Pt. 2)
Resuming 5 Important Ways Prenuptial Agreements Can Benefit You (Pt. 1), here, we will continue highlighting some of the reasons that you may want to have a prenup if you are planning on getting married.
Are you engaged to someone who has a lot of debt already – or to someone who may have a history of gambling problems?
If so, then another one of the benefits of prenuptial agreements can be protecting yourself from being responsible for your partner’s debt later. In particular, with prenups, you can specify that your partner will be solely responsible for any debt (s)he has coming into and/or acquires through the course of the marriage.
This can offer you huge protections later, especially if your partner ends up defaulting on his or her debt after divorce and creditors try to come after you for repayment.
If your upcoming marriage is not your first and you have children from prior marriages, then prenups can offer you an effective way of setting aside certain property or other assets for these children.
For instance, a prenup may dictate that a home, vehicles and/or jewelry remain individual property designated for a child; should divorce occur, this property would not be considered as part of the marital property to be divided as long as the prenup holds up in court later.
Although you never want to think about divorce when you are starting a marriage, the facts are that:
- Most marriages end in divorce.
- If a person has divorced before, there’s a 60 percent chance their second (or subsequent) marriage will end in divorce.
Knowing this, it’s clearly a smart idea to plan for the “worst case” situation of divorce by developing a prenup. With this contingency plan in place, should the marriage end in divorce, the resulting process can end up costing far less and being resolved far sooner, as the prenup may deal with many (if not all) of the major issues of the divorce.