At one time in America’s past, people viewed prenuptial agreements as a tool greedy individuals used to preserve their wealth in a future divorce. Such thinking continues, even in this more enlightened and contemporary society. Many still believe premarital agreements leave lesser-earning spouses with few or no resources to build a new future.
Our St. John, Indiana, team wants to educate you about the real power and benefits of well-drafted prenuptial agreements. We believe once you learn more about these documents, you will begin to understand the value of such an agreement.
What does a prenuptial agreement accomplish?
In the simplest terms, a prenup is an agreement entered into by a couple before getting married. It establishes the ownership of assets in case the marriage fails.
An unexpected advantage of prenuptial agreements is that they offer couples a way to discuss finances, something many people avoid. Once such discussions begin, both parties typically feel relieved that they have put this uncomfortable topic to rest. Addressing these issues before marriage can also help you avoid disputes over financial matters if your marriage eventually leads to a divorce.
Other benefits of prenups include:
- Establishing each spouse’s separate property
- Establishing the couple’s marital or community property
- Assigning each party’s separate debt responsibilities
- Establishing the couple’s jointly owned debt
- Protecting each party’s inheritances
You should also know what prenuptial agreements cannot address. For example, if you plan to have children, you cannot use a prenup to decide child support or custody matters should you divorce. You also cannot designate personal chores or household responsibilities for each spouse in a prenup.
Someone that knows and understands Indiana family law can explain this in greater detail. In the meantime, continue exploring our website for additional information.