It’s not uncommon for couples to bring their assets together after marriage. This may mean one spouse selling their home to live in their spouse’s home, creating a joint savings account or creating a business with financial help from their spouse. Additionally, each spouse will likely bring more assets into each other’s lives after marriage, inherit some money and maybe even start a business.
If there’s a divorce, which can happen even in the best marriages, couples have to split their assets. With all of their assets combined, it can be hard to divide things fairly. So, to rid as much confusion as possible, couples can create a legal document that protects their assets and ensures everything returns to its rightful owner – and that the distribution is fair.
What is a prenuptial agreement?
One of the best ways to protect assets in marriage is by creating a prenuptial agreement. A prenup is a legal document created before marriage (which is the only time you can make a prenup) that details each spouse’s assets and financial responsibilities (alimony) if there’s a divorce. Alimony is financial support given from one spouse to the other after divorce to ensure they continue living the same quality of life.
What is a postnuptial agreement?
Some people don’t know about prenups before marriage or don’t allot time to make one. After marriage, couples won’t be able to make a prenup, however, they can make a postnuptial agreement. A postnup is everything a prenup is, but it’s made after marriage and can even void a preexisting prenup if couples decide to make changes or include new assets.
Are you looking to protect your assets even if you don’t think you’ll be going through a divorce? Then you may need to consider your legal options when making a prenup or postnup.