One of the best ways to avoid divorce pitfalls is to see them coming. Soon-to-marry couples should keep in mind that marriage is never without risk. There is always a chance that the marriage will end up in divorce and that, with divorce, come financial problems.
Entering a marriage has financial implications. One of the spouses, for example, may contribute more to the couple's finances and may want to protect what he or she brings into the marriage. As the married partners build their wealth, they will probably co-own their assets and liabilities. In the event of divorce, those marital assets have to be divided, possibly even properties that may have more sentimental or economic value to one spouse than to the other.
The division of marital property can be contentious, prolong the divorce process and prevent the spouses from making sound decisions. Without a plan for how their wealth will be divided in case of divorce, the division of assets will undoubtedly exacerbate the emotional toll of the breakup.
In Orange County, California, or anywhere in the United States, a prenuptial agreement can help a couple keep their properties separate, protect them from each other's debt and lay out each person's responsibilities in the event of divorce. Because the agreement acts as a plan, it can help everyone get through the divorce process faster.
Drafting a prenuptial agreement is not about anticipating that the marriage will end in divorce. It is a vehicle that enables spouses to keep their finances stable, just in case. An important consideration in signing a marital agreement is to ensure that it does not contain any clauses that are unfair to either party and that it should be made in good faith. Once signed, the document binds the couple to adhere to the terms of the agreement.
To be certain that the document meets all legal requirements and is binding, the help of a family law attorney may be helpful.
Source: Southern Business Journal, "Financial Implications of Marriage," Scott McClatchey, Jan. 7, 2013