Attorney
A prenup, prenuptial agreement, or premarital agreement often gets a bad name. People can have some very strong opinions of a premarital agreement and, commonly, these opinions are not favorable, to say the least. Premarital agreements, however, have many benefits that are often overlooked. A legally binding contract that can establish how spouses will divide assets and liabilities in the event of a divorce, a premarital agreement is not just for the wealthy. It is not just a “plan for divorce,” as many people see it to be. It can accomplish much more and can also help you establish a stronger foundation for your impending marriage.
The Benefits of a Premarital Agreement
First and foremost, a premarital agreement is all about fostering a strong line of communication between you and your future spouse right from the very beginning. Sometimes uncomfortable topics, like finances, are pushed out into the light. While this can be scary at first, it is important to talk about your finances, property, and your expectations both openly and honestly. Drafting a contract like a pre-marital agreement can be an invaluable process, even if you do not end up executing it. You have opened some important lines of communication and this can be helpful and foster trust far into the future of your relationship.
There are also some important protections afforded by a premarital agreement that can bring you both peace of mind. Do you have separate property and family heirlooms that you are bringing into the marriage? You can specifically provide that these items are to remain separate property in your premarital agreement. Division of assets can be one of the most contentious issues in a divorce. A judge will first evaluate all property and determine whether it is separate or whether it is marital and should, thus, be subject to division. You and your spouse will have the ability to define what is separate property in your premarital agreement.
While protecting your property, you can also help guard yourself against debt. Debt is also classified as separate or marital in divorce proceedings. Debt considered to be marital will be subject to division just as the marital property will be. If your spouse is coming into the marriage with a significant amount of debt and you want to shield yourself against the possibility that you may be subjected to taking on some of the debt in the incident of divorce, then a pre-marital agreement can shield you from this by defining the liabilities as separate debt carried by your divorce. It can also outline how the debt should be handled in a divorce.
Because of the items and issues that can be fleshed out in a premarital agreement, divorces, where a pre-marital agreement is involved, are usually much more streamlined. This means that divorce is more likely to be faster and less expensive. A properly drafted premarital agreement can resolve some of the most prominent legal hurdles that must be overcome to finalize a divorce.
Family Law Attorneys
If you are considering a premarital agreement, talk to our knowledgeable attorneys at Navarrete & Schwartz about what it can accomplish for you. We are proud to serve the residents of Midland, Texas. Contact us today.