4 Huge Benefits of a Prenup Agreement

The decision to get married is a long beloved tradition. The romantic in all of us wants to believe that the wonderful union will endure the test of time and truly capture "'til death do us part."

As we all know, that is not always how the story ends. Plenty of factors can influence why a marriage eventually ends in divorce. And while the end of a union isn't necessarily a great thing, it does not have to be ugly, either.

One of the ways you can prevent a difficult, longstanding, and costly divorce process is to set things up ahead of time with a prenuptial agreement. Prenups carry a lot of undue stigma in our culture. They are not some predictor that a marriage is doomed from the start! Instead, they are a tool to keep both parties happy and protected should the unfortunate occur.

Read on to learn four great benefits a soon-to-be-married couple will enjoy by having a prenup done before they tie the knot. As you’ll see, the benefits far outweigh the maligned reputation of a prenup for all parties involved.

1. A Prenup Keeps You Both Honest From the Start

Prenups allow you and your partner to have serious, upfront talks about really important elements of your relationship before you become legally entangled.

This includes discussions about your current assets and liabilities. The debt you may have incurred prior to the marriage will likely be discussed here, too. Your assets, like investments, properties, and financial accounts, will also be disclosed.

Open communication about financial stability is a key aspect of successful marriages. Prenups help by getting these topics out on the table ahead of time. From there, you can develop a plan before any major events occur.

Additionally, you can talk about the types of plans you'd like to follow with the property, assets, or debts you accumulate together as a couple, too.

This creates a direct, open line of communication. And that line is vital to marital success.

2. A Prenup Clarifies Marital Property

Divorce proceedings are bound by state laws. That means that the property you have acquired together during your marriage is divided based on those laws.

The general purpose of the law is to attempt to keep things as fair and equal as possible. But that often is not the case when the dust settles.

For instance, what if one party has a family property they have inherited? Should the other party have legal rights to it because of divorce? Unfortunately, typical state laws dictate that they would.

Prenups can override the standard state laws by predefining the boundaries of marital property. It can explicitly note how marital property should be divided in the event of a divorce. It can also help couples retain property which was theirs before the union.

3. A Prenup Allows Equitable Distribution of Assets

One of the major issues of contention during divorce proceedings is fairness. Couples will often fight tooth and nail about what is fair or unfair in terms of the marital assets they gain or lose.

As you can imagine, this can quickly create bitterness, resentment, and anger. A prenup prevents claims of unfairness ahead of the gate.

For example, if a couple marries and one has significantly more wealth, they could lose far more after a divorce than they felt was fair. This can be a big problem in situations like retirement where you can't re-earn that income!

Prenup agreements prevent these types of “fairness issues” from happening after the fact.

4. A Prenup Protects Others (Business, Kids, Relatives)

Marital law in Southfield, Michigan typically divides assets as equally as possible between both parties in the event of a divorce. Of course, what if you have other people and other entities involved in your life? They could be at risk.

For example, if you have children from a previous marriage who you set up savings accounts for, those could be subject to division in divorce. If you have a business, some assets within that business could be liquidated to settle the terms of the divorce. The same goes for other assets like family property in your name.

Arranging a prenup prevents these types of divisions and sales in the name of fairness. You can pre-designate how and where assets and money like this will remain before marriage — and after if that is the outcome.

This keeps things like a business and loved ones protected from losing assets or money that had always been designated for them.

Learn More About a Prenup Today

As you can see, prenuptial agreements aren’t some strange force that places a curse on a marriage and dooms it to failure. Quite the contrary, actually — they help put things out there clearly to each other before you take the plunge.

This isn’t designed to greedily keep what’s yours. Instead, it’s about making sure both parties can divide things up agreeably and fairly prior to any heartbreak or stress of a failed relationship. In short, it’s better for everybody.

A prenuptial attorney in Southfield, Michigan can help you better understand all the advantages of pursuing a prenup. To learn more about your options and schedule a consultation, get in touch with us today.