Tying the knot: The benefits of prenuptial agreements

April 18, 2013

While money is never easy to talk about, if you plan to spend the rest of your life married to one person, you may benefit from discussing the issue before you have a wedding. Money and assets can be important issues in a relationship. One way to explore finances before a commitment is through a prenuptial agreement.

A prenuptial agreement is an agreement made between a couple before marriage. The device protects the assets of parties prior to a marriage in the event of a divorce. For example, it often sets out future terms regarding the division of assets, future earnings, ownership of a business, real property and other issues. If you are about to enter a marriage, this legal instrument may be for you.

There are several benefits of a prenuptial agreement. For example, it can help offer some protection against fraud for those who have valuables to protect. A person with significant capital can have peace of mind knowing that he or she can retain such wealth in event that the marriage does not last.

A party with fewer assets can also benefit from a prenuptial agreement. It can give a person assurance knowing that he or she will be financially protected if the marriage ends, despite a thorough investment in family duties or other noneconomic affairs.

Prenuptial agreements can also protect an inheritance that comes to one of the parties. For example, if a family has a business or heirloom that should stay within the bloodline, a prenuptial agreement can help.

Ultimately, the device helps determine what property should be distributed to each spouse in the event that a marriage does not survive. While couples do not necessarily need to have an agreement, a divorce will be subject to the property division laws if one does not exist. For example, Texas is a community property state. This means that a family law court will make a just distribution of assets among litigants pursuant to a divorce. This could place a lot of power out of your hands.

While it may be difficult to broach the topic of assets and wealth, premarital agreements can be a healthy thing for a marriage. If you are ready to commit to a partner, you should probably be able to talk about money with them, anyway. To find out more about prenuptial agreements, contact an experienced family law attorney.

Article provided by Kerr, Hendershot & Cannon, P.C.
Visit us at www.khcgalvestonfamilylaw.com/