Residents of Indiana who are planning on getting married might want to consider a prenuptial agreement. Although it’s a touchy subject, there are valid reasons to have one.
What is a prenuptial agreement?
A prenuptial agreement is a legal contract between engaged people. It states responsibilities and explains everything is divided after a divorce.
Although a prenup is not the easiest topic before a wedding, it might be necessary. Certain factors benefit one or both parties if there is a prenuptial agreement in place before the marriage takes place.
Why should couples have a prenuptial agreement?
One or both spouses can benefit from having a prenup in certain situations. If either or both spouses have previously been married, they might want to have a prenuptial agreement to prevent an uncertain financial future in the event of a divorce later on. They might have had a shock with their first marriage and walked out with less of their property and fewer assets than they expected.
If one spouse is much wealthier than the other, they might want to have a prenuptial agreement drawn up. It can help protect their assets and property and prevent the other spouse from getting too large a share if they divorce. However, it can also serve as a safeguard that the spouse with less money didn’t marry the wealthier one for their money.
Having children from a previous marriage or unwed relationship is a big reason to want a prenup. It ensures that the person’s children can receive assets and property once they pass away. The clause in the prenuptial agreement prevents the surviving spouse from keeping inheritances from those children.
A prenup can also keep each spouse’s debt separate. This means the spouse who has not incurred debt can avoid responsibility for a portion of the other party’s debt if the couple divorces.
Prenups aren’t for all couples, but they can protect one or both parties in these ways and more.