3 Reasons To Consider A Prenuptial Agreement
There are many reasons why a prenuptial agreement is worth considering. By being aware of the most notable reasons to consider a prenuptial agreement, it is easier to determine if a prenuptial agreement is the right choice for a particular marriage.
What Is A Prenuptial Agreement?
A prenuptial agreement is a contract that two spouses enter into, prior to marriage. By developing, and then signing, a prenup, two spouses set the terms for their separation.
Some of the terms that a prenuptial agreement can clarify are as follows:
- The amount of alimony either spouse will receive.
- Who will own a business that both spouse’s share.
- The amount of money, from an inheritance, each spouse will receive.
Each one of these terms can allow both spouse’s to continue living the life they wish to live, in the event of a divorce.
What Are 3 Reasons To Consider A Prenuptial Agreement?
A prenuptial agreement comes with many benefits. Some of these benefits and, in turn, the reasons why a prenuptial agreement is worth considering, can be found below.
Reason 01: Keep Your Finances Secure
Right after a divorce, it is not uncommon for one spouse to be awarded alimony. Some alimony payments can be quite significant, forcing the paying spouse to forfeit a large percentage of their earnings.
To prevent a significant alimony payment, two spouses can sign a prenuptial agreement. Within this prenuptial agreement, the two spouses can clarify the exact amount of money they will need to pay/receive.
Rather than allowing the court to set a specific alimony amount, the two spouses can set the amount that they believe is most appropriate. Doing so can allow the paying spouse to save money, while also guaranteeing that one spouse will receive a specific amount of money, in the event of a divorce.
Reason 02: Protect Your Business
A business may be one spouse’s venture. But, due to being married, the different facets of this business, including its earnings and debt, may belong to both spouse’s.
To prevent a business’ debt from being divided and distributed to both spouses, both spouses can sign a prenuptial agreement that prevents the business from being divided, in the event of a divorce. The same is true if the business is a success; all of that money can go to the one who owns, and runs, the business, rather than the other spouse.
Outside of the above, certain facets of the business – specific property that is integral to the functioning of the business – can be divided, in the event of a divorce. But, with a prenup, this division can be prevented.
Reason 03: Guarantee Your Retirement
The money within a retirement plan and/or pension can be divided, in the event of a divorce. To prevent these retirement funds from being divided, two spouses can sign a prenuptial agreement.
Signing a prenuptial agreement allows both spouses to protect their retirement funds. In the event of a divorce, the money from their plans and pensions will not be divided or used to pay alimony.
Speak With A Tampa Prenuptial Agreement Lawyer
A prenuptial agreement offers a wide variety of unique benefits. Speak with a Tampa prenuptial agreement lawyer and we will assist you in developing the prenuptial agreement that is right for your situation.