Prenuptial agreements serve to protect the interests of both parties in case of a divorce. By drafting this document before a wedding takes place, a New York couple can avoid a contentious and stressful legal battle in the event that they divorce in the future.
Many couples avoid this important legal step because they believe that drafting a prenuptial agreement is like planning on the marriage failing, but that is not the case. A prenuptial agreement not only provides peace of mind regarding finances and property division, it can prompt important conversations between the two parties regarding their financial mindset and expectations.
Important issues to discuss before signing
Drafting a prenuptial agreement well in advance before a wedding gives a couple many opportunities to discuss important issues and thoughtfully draft an agreement that is uniquely suited to their needs. As you work with a lawyer on your agreement, several important factors should be taken into consideration, including:
- Division of marital debt
- Responsibility for student loan payments
- Distribution of real estate holdings and family or vacation homes
- Continued operation of family-owned business or jointly owned business
- Expected future income
- Business debt
- Future education needs and school for advanced degrees
- Potential intermingling of certain types of assets and liabilities
Many variables can influence the terms of a prenuptial agreement, but by taking into account any issues that could lead to disputes or complications in the future, you may be able to avoid litigation should the unthinkable happen.
Plan for a strong financial future
Rather than planning to divorce, drafting a prenuptial agreement is planning on a strong financial future, no matter what. In addition to the practical financial protections that this type of agreement puts into place, it can lead to useful discussions regarding some of the following:
- Spending habits
- Child and spousal support from a previous marriage
- Approach to credit and loans
- Retirement savings
Protecting one's financial interests is not a step only necessary for the wealthy, but it is also a smart choice for people of all income levels. Prenuptial agreements are especially beneficial for people entering second or subsequent marriages who wish to protect assets and money for their children. Regardless of your individual circumstances, you would be wise to speak with a lawyer to determine if a prenuptial agreement is in your best interests.