Prenuptial agreements have become quite common in recent years, serving the purpose of determining what each party pays or gives up in the event of a divorce. Without a prenup, the property is divided according to the specific state laws.
To explain in detail, here are a few reasons that answer ‘why get a prenuptial agreement?’.
One partner owns more assets than the other
Those with lots of assets often worry about what will happen if they ever divorce their spouse. Usually, a prenup states that the assets you owned before getting married will remain yours after the separation. Planning ahead on how you both will deal with the assets cuts on money and hassle in the future.
If one of you has a business
If you own a business and you head for a divorce, you could find yourself forced into giving up your business to your partner. That’s why, it’s essential to sign a prenup for a person who runs a business to reduce the aforesaid risk.
If you or your partner have more incomes than the other
One of the several reasons stated by businessinsider.com, the prenuptial agreement helps to secure your finances for the future if you earn less than your partner. Fixing a specific amount, duration and other aspects of the same pre-hand makes everything easier and more secure.
Raising the kids
Usually, one of the partners takes care of the kids while staying at home. In case of a divorce, it may be difficult for the stay-at-home spouse to get back to work. Although, the custodial spouse will get certain child support, the help lasts only till the kids are 18 years of age. A prenup makes financial responsibilities one partner has to the other quite clear.
Protect yourself from debts
Some people find themselves ending up responsible for huge debts of their partner that they didn’t even know about. A prenuptial agreement protects you from the bad spending habits and debts of your partner if you separate from them.
Custody of pets
Your pets are no less than the family, and it may be a difficult to figure out what happens to your pets if you two separate. That’s why, pet prenups are getting increasingly common with the rising divorce numbers. The prenup mentions who gets the custody of the pets if you and your partner go for a divorce.
Financial troubles are often the reason behind divorces. A prenup allows both the people to make a thorough assessment of their financial scenario and talk about it more openly, along with the other personal aspects, thereby bringing in more transparency to the relationship.