Ten Things You Should Know About Prenuptial Agreements

Prenuptial agreements can be a touchy subject, especially when the proposal has generated the excitement and optimistic future for the happy couple. Prenups are clauses of agreement between a couple that protects their financial assets. The agreement is valid in all 50 states, and drafting a fair and reasonable agreement is becoming a wise idea for many soon-to-be couples. Prenuptial agreements are designed to protect each person in case of a dispute, divorce, tragedy, and also distribute equality for both parties.

Although this may be an uncomfortable outlook for some in the initial stages of wedding arrangements, it can be a wise decision in the long term. Here are ten things to consider in order to draft a solid prenuptial agreement:

1. The prenup will define equality in rights and ownership between your spouse and yourself
2. The prenup will keep all of your pre-marriage assets safe so that they will be returned to you in the case of a breakup or divorce
3. You will be protected from any pre-marriage debt, financial issues, business ownership, or loans that your spouse may have incurred
4. You can avoid disputes of asset distribution in the case of divorce or a tragedy
5. When drafting the prenuptial agreement, you can detail death benefits and claims of insurance
6. When drafting the prenuptial agreement, you can indicate who will have ownership of any secondary property, homes, or assets that you purchase together over the course of your marriage
7. When drafting the prenuptial agreement, you can designate how any pre-marriage debts will be paid, and by whom
8. The prenup will determine what gifts, trusts, or inheritances will be shared or held exclusively by one spouse or the other
9. The prenup will detail any expectations of future inheritances
10. The prenup will be a fair, reasonable, and legal document to protect both parties over the long term

These are just ten of the benefits and highlights of drafting a prenuptial agreement. Different couples will have different needs and requirements, but it does give a chance for the couple to lay out and determine expectations, and control assets and liabilities. This will also bring forward anything to limit potentially-dangerous surprises down the road!