Prenuptial agreements were once relatively rare. Only wealthy or famous people drafted contracts prior to marriage a generation ago. However, that has changed. The younger generations embrace the idea of prenuptial agreements.
Many people now feel strongly about preventing unnecessary conflict if they ever divorce. Prenuptial agreements can help couples in a variety of different circumstances strengthen their marriages. They also help protect against the financial devastation of a contested divorce.
Every prenuptial agreement is unique, but there are certain issues that most couples address within these documents, including the following common concerns.
Protecting separate property
Maybe someone already started a business before they got engaged. They may not want to share ownership of that company with their spouse if they ever divorce. Perhaps someone anticipates a large inheritance in the next decade or two. People can include terms in prenuptial agreements making certain assets their separate property. They can protect those assets from claims during divorce proceedings.
Establishing property division rules
Louisiana is a community property state. Most of the resources shared by the spouses are at risk during a divorce. Couples may need to evenly divide all of their income and assets, as well as their debts, if they litigate their divorces. Prenuptial agreements can lead to uncontested divorces by providing clear instructions for exactly how the spouses should divide their marital property. Those who know what to expect are less likely to fight over certain assets with their spouses.
Setting terms for spousal support
Spouses may recognize that they have vastly different financial circumstances. The marriage may alter someone’s financial prospects. A spouse could give up their career development for the family. They may worry about what would happen in a divorce. Spouses have the option of clarifying certain standards regarding spousal support. They can include rules about when one spouse might pay the other. They can also set rules for when someone could become ineligible for support.
People should be thorough when establishing prenuptial agreements. Then, they can feel more confident about their marital relationship. Signing a prenuptial agreement can set spouses up for a stronger marital union, in addition to stronger personal safeguards in the event of divorce.