How are assets split with a prenup?
Generally, a prenuptial agreement sets forth how the marital assets will be divided in the event of divorce or either spouse’s death. It can also address what assets remain the separate assets of each spouse and what happens to the appreciation in value of the separate assets.
Understanding Prenuptial Agreements: What They Are and How They Work
A prenuptial agreement, or ‘prenup’, is designed to protect a person’s finances and assets in the event of a divorce. It’s a legal document that sets out the circumstances under which a divorcing couple’s assets and liabilities will be divided, and is often entered into before a couple is married. In some cases, prenups can be amended after the wedding.
Prenuptial agreements are sometimes seen as a tool to protect one partner more than the other, but this isn’t always the case. Most prenuptial agreements are created in order to structure financial obligations and responsibilities of each partner. It’s important to note, however, that any agreement made within a prenup may not be enforceable if it goes against a state’s public policy.
When creating a prenup agreement, it’s important to keep in mind the goals of both partners. Ideally, the agreement should be drawn up with the help of a lawyer who specializes in family law and works with a marriage counselor to ensure that any stipulations and/or expectations are realistic and as fair as possible.
Once both partners have signed the agreement, it will become legally binding in the event of a divorce. This means that if one partner’s wishes are not laid out in the prenup, the court will likely fall back on the agreement in order to settle the divorce, rather than relying on state laws and common law.
Prenuptial agreements can have an immediate impact on a partnership, as it is an acknowledgement of the roles each partner agrees to take in the relationship. It can also act as protection from any potential future financial issues that could arise should a divorce occur.
With these points in mind, it’s important for couples to weigh the pros and cons of prenuptial agreements before signing one. If a couple is considering a prenup, they should schedule a consultation with a qualified family law attorney who can help them make an informed decision.