When you meet and marry the love of your life, you hope you will live happily ever after. Sometimes, however, things don’t quite go to plan. This explains why more and more couples are signing prenuptial agreements before becoming officially married.
A prenuptial agreement, or a prenup, is an agreement that couples sign before marriage to provide a framework for handling financial matters in the event of a divorce. And if you get it right, a prenup can help clarify your financial rights and preserve your hard-earned assets should things fail to work. But first, is a prenup is right for you?
Here are three instances when signing a prenup could be a prudent idea.
When you have significant assets
It’s not uncommon to come into marriage with a significant amount of assets. If this is your situation, then signing a prenup would be a great idea. Without one, you would have a difficult time separating what you came into the marriage with from what you acquired during the marriage. This means that everything could be up for division per Ohio’s equitable property laws.
When your partner has significant debt
Debt division, just like asset division, can be a contentious subject during the divorce. If your spouse got into debt before the marriage, you shouldn’t be responsible for such liability in the event of a divorce. A prenuptial agreement can draw the line between marital debt and personal debt.
When you expect a significant inheritance
An inheritance that is received by one spouse is generally treated as separate property. However, if you are expecting a significant inheritance, you are better off signing a prenup to ensure that your inheritance is indeed treated as separate property in the event of a divorce.
The idea of discussing divorce while you’re preparing for marriage might sound odd. Unfortunately, divorce is one of life’s sad realities. Find out how sound legal guidance can help you create a prenuptial agreement that will stand the test of time.