A prenuptial agreement is a legal document that outlines certain stipulations to which you and your spouse must adhere once you marry. Drafted and signed before the marriage, the prenuptial agreement can help you avoid disputes during your marriage or contentious issues in the event of a divorce. While not every couple needs one, there are many reasons to get a prenup. Attorney Jennifer Dixon of Remington & Dixon in Charlotte, North Carolina, knows that understanding how these documents work and what protections they provide helps you make knowledgeable decisions about your financial affairs and the future of your relationship.
What Is a Prenup or a Prenuptial Agreement?
A prenuptial agreement, or a prenup, is a legal contract between two people planning to marry that clarifies certain financial matters and protects the financial interests of those involved. A key point of most prenups is to outline how assets will undergo division in the event of a split or a spouse’s death.
More specifically, many prenuptial agreements address what property acquired before the marriage remains separate after it and what happens to investments, retirement funds, and other assets that may belong to one party or the other.
Such agreements also outline alimony or spousal support arrangements and each party’s responsibilities regarding debts and finances.
While the main focus of a prenup is usually financial, many couples also use prenuptial agreements to address other areas pertinent to their marriages. For example, some of these contracts cover who handles what when it comes to raising children, keeping the family home, or providing for a family pet.
Some prenups also outline strategies for overcoming disputes or navigating marital issues, which can save time and money in comparison to navigating these issues through other avenues. While there are many different reasons to get a prenup, the exact contents of these agreements will vary broadly based on the circumstances surrounding your union and the goals you and your partner have when it comes to your finances and shared future.
Are Prenuptial Agreements a Good Idea?
Are prenuptial agreements a good idea? Prenups are a smart choice for many couples due to the clarity and protection they provide ahead of marriage. While prenups can offer benefits for anyone, regardless of wealth, they are especially common among those with significant assets or considerable family wealth.
When someone from a wealthy family marries, their family may have concerns about the new spouse potentially gaining access to the assets the spouse’s family worked hard to accumulate. A prenuptial agreement helps assuage such fears, giving assurance that family assets will remain safe and protected for future generations.
There are also other reasons to get a prenup. Most people who marry do not anticipate divorcing at a later date.
However, divorces do happen, and they can be quite expensive. A prenup can set certain terms for divorce proceedings that can lower the costs associated with them and reduce the likelihood of lengthy courtroom battles between spouses. While this can lead to financial benefits, it can also help divorcing parties maintain a sense of privacy while navigating their split.
Should I Sign a Prenup?
Now that you know more about how prenups work and what they can do, you might be asking yourself: Should I sign a prenup? While there is no one-size-fits-all answer to this question, there are many reasons to get a prenup, and whether signing one makes sense depends on your specific goals, beliefs, and priorities. It also depends on what the prenup says and whether it is fair to both parties.
That said, there are many reasons it may prove wise to sign a prenup if your intended spouse asks you to do so. For starters, drafting a prenup can improve family relations if your intended family has significant assets and concerns about potentially having to share them with you.
Another instance when you may want to sign a prenuptial agreement is if you or your fiancé(e) have children from prior marriages. This agreement can stipulate how assets will undergo distribution, offering protections for the children and clarity for the future spouse.
Signing a prenuptial agreement can also help build trust between you and your spouse-to-be. It does so by giving you a chance to have open discussions about finances, expectations, and plans for the future, setting a strong foundation of trust for your marriage.
Before you sign a prenup, make sure you fully understand its implications to make sure it is fair to both parties.
Taking the time to review its contents carefully helps you address any concerns and feel confident when the time comes to sign the agreement.
Need a Hand Navigating a Prenup?
Now that you understand the many reasons to get a prenup, you may be thinking about whether to create or sign one of your own. Remington & Dixon, PLLC understands the intricacies of prenuptial agreements and recognizes the concerns some people have when drafting and signing these contracts. Call 704-247-7110 to schedule a consultation to discuss your needs today.
