WHEN SHOULD YOU CONSIDER SIGNING A PRENUPTIAL AGREEMENT?
A prenuptial agreement is a contract between two people looking to get married and the agreement will govern the outcome for certain issues like property division and alimony in the event of a legal separation or divorce. Many people believe that prenuptial agreements are only for the aging tycoons who wish to cut off their younger spouses from the family fortune, but this is not true. A prenuptial agreement can be a valuable tool for all couples; however, while all couples can benefit from a prenuptial agreement, there are specific situations in which it is strongly advisable to consider signing a prenup. In this article, we discuss six of these situations.
You Are a Business Owner
If you are a business owner or have shares in a corporation, or are in a partnership, you should consider signing a prenuptial agreement before getting married. With a prenup, you can specify your spouse’s ownership rights. If you do not have a prenuptial agreement, your spouse may be entitled to up to half of your business in the event of a divorce. If this is not what you want, it is advisable you create a prenuptial agreement before getting married.
You Have Significant Assets
According to a 2018 CNBC article, more and more millennials are signing premarital agreements. According to the article, one of the explanations for this could be because millennials are getting married later, meaning they have more assets to protect. If you have significant assets, signing a prenuptial agreement before getting married can help you ensure that the assets you take with you into the marriage remain in your sole possession in the event you get divorced.
One of You Has Significant Debts
If either you or your partner has significant debts, you should consider signing a prenuptial agreement to keep the obligations separate. In Florida, debts are divided equitably during divorce. So, if you do not want to be forced to pay your partner’s debts or your partner to pay your debts in the event of a divorce, you should consider signing a prenup.
You Have Children From a Previous Marriage
A prenuptial agreement can be used to protect your assets which shall allow you to preserve the assets for your children or if adults, gift or devise them to your children or other family members.
You Received or Are Expecting To Receive an Inheritance
Indeed, in Florida, an inheritance received by one party even in marriage is considered separate property. Notwithstanding, it is still good to include inheritance in a prenuptial agreement. Doing so can help you ensure it remains separate property.
One of You Plans To Stay Home
If you or your partner plans to, for example, stop working and stay home after marriage to raise children, you should consider creating a prenuptial agreement which contains a provision for alimony or some other type of compensation for the lack of work history, lack of work experience and training, and the lost retirement benefits during the years you spent raising children.
Contact a Jacksonville Prenuptial Agreement Lawyer
Read more related articles here:
Also, read one of our previous blogs at:
Click here to check out our On Demand Video about Estate Planning.
Click here for a short informative video from our own Attorney Bill O’Leary.