Many of the benefits of a prenup comprise of the following:
- Documentation of each spouse’s individual property to safeguard it as individual property.
- Following your estate plan without court involvement to determine property allocation.
- Establishing what is spousal property and what is communal property.
- Recording and specifying any special agreements among you and your spouse.
- Avoiding drawn-out court procedures, resulting in the time of costly divorce attorneys.
- Decreasing disputes throughout a divorce.
- Determining procedures and rules for matters that might come up in the future.
- Assigning debt, like credit cards, loans for schooling, and mortgages, to the relevant spouse to avoid each spouse sharing debt obligations.
Saves Time and Money
Divorce is costly and takes time. Even if you both agree on each legal issue that afflicts typical divorces, it might still cost you hundreds or possibly thousands of dollars in court costs and potential legal fees prior to a judge formally terminating the marriage. A lot of couples start the process of divorce in agreement, but as time goes on, spouses are inclined to disagree on significant matters, that costs more and takes up more time.
A suitably drafted prenup enables the couple to address the most typical legal difficulties in divorce, which may bring a fast resolution to the procedure and bypassing lengthy court battles.
Safeguard Your Individual Property and Family Heirlooms
One of the most litigious parts of divorce is when the time comes for the division of assets and debts. We typically think “what is mine is yours and what is yours is mine” as the marriage adage, but as it comes down to divorce, a lot of couples are in disagreement on who would walk away with certain property.
A divorce judge’s initial take is typically to determine and designate the couple’s property as individual or spousal and then allocate it. A prenuptial agreement may be extremely helpful if you get married with family heirlooms or other property that you want to keep independent. Spouses may specify what property belongs to each of them and how they would like to handle the division of the assets should they divorce later.
Designate What Qualifies as Spousal Property
When you divorce, the courts will divide spousal property between them in accordance with your state’s laws. In communal property states, courts assume that each asset obtained throughout the marriage belongs equally to each spouse, and the judge will divide the value equally among them. In states with equitable distribution, judges determine who the spousal property belongs to and then divide it equally among the spouses.
Prenuptial agreements may help couples bypass a bitter and lengthy property conflict by determining what qualifies as spousal property and how you would like to divide it through a divorce. Many couples determine that a 50/50 division is best, but for others, an unequal allocation might be more suitable. One of the most beneficial qualities of a prenup is that you both may choose how you would manage it and the court will recognize your desires.
Safeguard Yourself from Debt
Along with amassed assets, the court will divide spousal debt and other obligations in the divorce. If a spouse comes into the marriage with a huge amount of credit card or other loan debts, a prenuptial agreement will enable you to determine the obligations as your spouse’s individual debt and specify how you will manage it in the divorce.
Source:
Heinig, Melissa. “Prenuptial Agreement Benefits and Drawbacks.” Www.nolo.com, Nolo, 10 Oct. 2011, www.nolo.com/legal-encyclopedia/prenuptial-agreement-benefits-drawbacks-29909.html.
