Engaged couples in New Jersey might want to consider a prenuptial agreement before walking down the aisle. If you’re considering this route, it’s important to know all about prenups.
What is a prenuptial agreement?
A prenuptial agreement is a formal legal document that serves as a contract between two people who are planning to get married. It lists all property and assets owned by either party and states what each person’s share of those things would be in the event of a divorce.
While a prenup isn’t always the most pleasant topic for people getting married to discuss, it’s sometimes important to have this document. It can protect the individuals involved and safeguard certain assets depending on the circumstances. There is a common misconception that only wealthy people have prenuptial agreements, but these legal contracts can benefit anyone regardless of their financial status.
Why would you want a prenup?
There are certain situations that would benefit you if you had a prenup. One of the most common reasons to get a prenuptial agreement is that you have children from a prior relationship and want to leave them property and assets upon your death. If you pass away before your spouse, your spouse could prevent those children from getting their inheritances. A prenup ensures that they get what you wish to leave them.
If you know your fiancé has serious debt, a prenup can protect you from having any responsibility for additional debt they amass during your marriage. This is a good way to protect your credit and prevent it from declining.
Prenuptial agreements can even lay out the expectations of both you and your future spouse during your marriage. Those responsibilities can include things that are financial and those related to things happening in the household.
If you own a business, a prenup can protect you by allowing you to hold all the assets related to it. If you and your spouse end up getting a divorce in the future, the document can prevent your spouse from getting a portion of the value of your business.
Although the idea of prenups can be intimidating, creating one might be appropriate for you and your spouse. It may be beneficial to discuss the topic well before the wedding takes place.