Marriage can be a wonderful moment in people’s lives. However, even the strongest marriage is susceptible to conflict and issues. If a marital conflict goes on unresolved, it could lead to a divorce. Divorce often means untangling many delicate matters, which include asset division.
People with high net worth often look for ways to protect their assets in case of a divorce. It may not be enough to take a spouse’s word that they are not in a marriage for money or that they would not take more than their fair share of an estate. People who want to protect their assets may want to consider making a legal document called a prenuptial agreement.
What does a prenuptial agreement do?
A prenup is a legal document that, in simple terms, outlines how assets are divided if there is a divorce. A prenup is made before marriage. Once two are legally wed, a prenup can not be made (although a post-nuptial agreement can often be made).
A prenup doesn’t mean a divorce will happen, contrary to popular misconceptions. A prenup has many other benefits, which can support the reason someone may consider making one. For example, a prenup could be used to support an estate plan and distribute assets without court involvement. The terms in a prenup could help protect an inheritance for children from a previous marriage or help ensure a spouse gets their share of an inheritance.
A prenup could also include alimony. Alimony is a form of financial support given to one spouse from the other if a marriage ends. This is especially beneficial for people who were not employed during a marriage. If a prenup is important to you, then you may need to reach out for help to learn about your legal options.