Why Do I Need A Prenup?
Are you planning to get married soon? If so, you may have considered entering into a prenuptial agreement. The following article will provide some reasons why prenuptial agreements are recommended.
What is a prenuptial agreement?
A prenuptial agreement (or “prenup”) is an agreement that two parties enter into prior to marriage, which lists all of the property each party owns, as well as any debts that each party owes, and makes a determination of the parties’ respective rights in the event of separation or divorce.
Why should I consider entering a prenuptial agreement?
A prenuptial agreement can be very beneficial to both parties entering the marriage, as it protects the following:
- Property that either party owns at the time the marriage is entered into
- Finances of either party at the time the marriage is entered into
- Property interests of any children from previous relationships
- Retirement or education funds that either party has prior to the marriage
- Debt obligations
- Inheritance rights
- Ownership rights in life insurance/ disability policies
- Obligations of spousal support in the event of separation or divorce
What happens if I don’t enter a prenuptial agreement?
Marriage is a contract between two parties and with this contract comes certain property rights for each spouse. As such, if you decide not to enter a prenuptial agreement and there is a subsequent separation or divorce, the following results may occur:
- You may have to share ownership of any property acquired during the marriage. Any property obtained during the life of the marriage is typically identified as marital property rather than your own separate property. Furthermore, marital property is subject to equal distribution between the ex-spouses upon divorce. Therefore, if there is not a valid prenuptial agreement specifically delineating certain property as your separate property, ownership of this property will likely have to be shared with your ex-spouse.
- You may have to share in the management and control of any property acquired during the marriage. In addition to ownership, you may have to share management and control of property with your ex-spouse. This can be particularly problematic because it could result in your ex-spouse making the decision to sell the property or give it away.
- You may have to pay for debts incurred by your ex-spouse during the marriage. Just like property acquired during the marriage becomes marital property subject to equal distribution, so too do any debts incurred by either spouse during the marriage. If there is no agreement which stipulates that debts incurred by one spouse belong to that spouse only, you may be required to share in the debt owed by an ex-spouse, even after the marriage ends.
Do You Need Help Drafting a Prenuptial Agreement? Contact Our Firm
Drafting a proper prenuptial agreement can be a complicated process. Let us help you. The experienced Orlando family law attorneys at Greater Orlando Family Law will be happy to answer any questions and address any concerns you may have regarding the process.
