Why should you have a prenuptial agreement?
California residents are used to hearing about celebrities opting to have a prenuptial agreement when they marry. This is why many people seem to believe that a prenup is just for celebrities. That is not actually true, because any marrying individual can enjoy the benefits of having a prenuptial agreement.
Whether you are a dedicated business man or woman or someone who is just starting their career, having a prenup when you marry your significant other makes sense. A prenuptial agreement can protect assets, rights and interests in the marriage. Any couple who brings their assets into the marriage may find a prenup advantageous. It preserves the expectation of both parties when it comes to the financial matters of marriage, and eventually helps to prevent financial disagreements in the event of a divorce. This marital agreement can also clarify the financial rights and responsibilities for each party.
The power of a prenup is all about asset protection. It clarifies what’s mine, what’s yours and what’s ours during the marriage and divorce. With a prenuptial agreement, soon-to-be-spouses can safeguard their personal assets such as a small business, bank accounts, and investments. The prenup will preserve those properties as non-marital property, exempting it from property division during a divorce. This means that if you have real estate that you acquired before marriage, that asset would not be subject to division. You can address all financial matters in a prenuptial agreement except child support. A prenuptial agreement is particularly important for California residents because they reside in a community property state.
And if you are one of those people consider remarrying, a prenuptial agreement can help you protect your children’s financial future. Couples who have children from a previous marriage can safeguard their assets through a prenup. So if that person gets divorced again, their new spouse cannot claim rights or interests over those assets.
Source: Fox Business, “Why Engaged Couples Should Sign a Prenup” Robert DiGiacomo, Accessed on Oct. 2, 2014