Traditionally, prenuptial agreements have been considered a taboo subject of conversation, so naturally, many people do not know what a prenup actually does or what benefits it could provide. While this type of agreement may not work for every couple, it can be a positive arrangement for some couples.
A prenuptial agreement is a contract that dictates how assets and liabilities will be divided should the couple in question decide to get a divorce. Since every marriage and divorce is unique, every prenup can be too. You can tailor your prenup to meet your basic needs and include a variety of items to address in the event of a divorce.
Many people find prenups beneficial because it prevents arguments, stress and frustration during the divorce process, since everything has already been decided. Your prenup should provide an understanding of what is to be considered separate property as well as how any marital property should be divided.
What Should You Include?
While each prenup can be personalized and tailored to the specific needs of the couple in question, most prenups generally include the same type of guidelines and items. You’ll want to sit down with an attorney to determine which assets and liabilities to include in this document and how they should be handled. A few assets people usually choose to include are business interests, trusts, inheritances and property/real estate.
You may also want to include provisions regarding confidentiality or other financial understandings you and your spouse will want in place after your divorce.
Talking about a prenup with your soon-to-be spouse does not have to be a difficult or awkward conversation. Many couples find these agreements helpful as they can provide security and transparency in your marriage and a more amicable path in the event of a divorce.