When two people decided to get married, they don’t want to think about the idea that one day they may get enmeshed in an ugly divorce. But the fact is that more than 50 percent if marriages end in divorce so it’s important to protect your assets before a divorce battle ensues.
Prenuptial agreements are a good way to protect your interests in case your marriage fails. These agreements are legally binding and dictate how a couple will divide their assets in the event of separation.
Under a prenuptial agreement, a divorce lawyer will determine, prior to the marriage, how a couple wishes to divide their property or assets. These agreements can be used to protect business interests and provide post-divorce support if one spouse gave up their careers for the marriage. A prenuptial agreement can cover estates, property and even other non-financial decisions.
Prenuptials are especially advantageous for older people, those who are very wealthy and people marrying for the second or third time.
At one point in time, the U.S. courts did not recognize prenuptial agreements because it was believed they eroded the meaning of marriage. However, the majority of states now recognize these agreements as legally binding and often uphold them in court.
In the U.S. a prenuptial is considered binding as long as the agreement is in writing, is executed voluntarily and is fully disclosed at the time of signing.
Issues if child custody and access cannot be included in a premarital agreement.
Prenuptials can be challenged in court, but this is not an easy task and can often lead to a protracted divorce.