Prenuptial agreements are important for asset protection and peace of mind in many situations. As you plan your wedding, you should discuss the potential for a prenuptial agreement with your soon-to-be spouse.
If you want to protect your finances, there are some elements you need to think about.
Do you own any real estate?
If you or your significant other own any real estate, the prenuptial agreement should clarify who retains ownership of that property in the event of a divorce. Protect your financial interest in any property that you bring into the marriage.
Do you have any investment accounts?
Investments are a source of significant wealth for many people. The money in those investment funds can become marital property if you don’t protect it. Keep your individual investment funds separate to preserve your own financial stability.
Were you given an inheritance?
Whether your inheritance comes from deceased parents or a distant relative, you don’t want to risk losing that money in a divorce because you treated it like marital funds. Keep your inheritance in an account of its own. Retain sole access to that account. Detail its ownership in a prenuptial agreement including its settlement in the event of a divorce.
A prenuptial agreement protects your financial assets as well as those of your significant other when you get married. With a prenuptial agreement in place, a divorce settlement is easier to finalize because many of the most contentious elements will already be clearly defined. This can save you the emotional strain of negotiation and disagreements.