A prenuptial agreement, premarital agreement, or prenup, is a contract that two people enter into before they get married. A prenup can be used to establish the rights and responsibilities of each spouse in the event of a divorce or death. There are many reasons why couples might choose to get a prenup.
A prenup can be a valuable tool for protecting your assets, your children, and your financial future. When considering marriage, it is important to talk to an attorney to discuss your options and to make sure that you understand the terms of a potential prenup.
Reason #1: Protecting Your Assets
Significant assets, such as a business, real estate, or investments, should warrant a prenup consideration. Establishing a prenup can help to avoid conflict and save money on legal fees should a divorce occur. By having a prenup in place, you and your spouse can avoid having to negotiate the division of assets and debts in court that were written into the agreement. Marital assets are still subject to a court-ordered equitable split under most circumstances (see postnuptial agreements).
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