Couples preparing to marry generally don’t want to think about what would happen if they end up getting a divorce. However, that’s essentially what a prenuptial agreement involves. Prenuptial agreements allow couples to determine, in advance, how a variety of issues will be settled if the marriage fails.
About half of marriages end in divorce, so it makes sense to plan for the worst even if couples don’t foresee a separation. There are several situations where it would be a very good idea for a couple to have a prenuptial agreement. For example, a prenup can be important when one person has significantly more assets than their partner.
When a couple marries, the assets that they bring into the marriage are generally not considered to be marital property. However, if a couple mixes their funds, as is often the case, this may change. Without a prenuptial agreement, someone could see large amounts of their property go to their ex. When one person has a business, a similar problem exists. Any increase in the value of the business over the term of the marriage is normally considered marital property. Therefore, if a couple divorces, business assets may end up being divided without a prenuptial agreement in place.
Without prenuptial agreements, divorces can quickly become contentious. Couples may disagree over how to split up assets and alimony payments. Additionally, if there is a business or debts involved, these may also be divided during a divorce. A lawyer could explain to a client the benefits of having a prenup.