When planning a marriage, many people are often hopeful that they will be with their future spouse for a lifetime. Unfortunately, this is not always the case. Many marriages often end up in divorce, and of those that don't, the death of one partner often terminates the union.
While the perception among some folks is that signing or even discussing a prenuptial agreement sets a negative tone for the rest of the marriage, this is not usually the case. It is important that you are realistic about the possibility that your marriage might not last a lifetime, and that there may be financial issues that you and your spouse may need to resolve in case the marriage ends. Here is a look at 3 situations that may require you and your spouse to consider discussing a prenup.
Your partner has a high debt load
If your future spouse is bringing a large amount of debt to the marriage, it would be wise to consider signing a prenup to ensure that you are not responsible for paying back their debt. With no prenuptial agreement in place, you would be responsible for any debt held jointly during the marriage, and would be exposed to repossession from creditors should your spouse file for bankruptcy.
You own a business
If you own or co-own a business, a prenup could help ensure that your spouse doesn't become an unwanted partner when the marriage ends. Typically, a prenup would restrict your spouse from claiming any stake in the business or any incremental value of the business during the course of the marriage.
If you own intellectual property rights such as a patent to an invention, or are keen to protect certain unique assets such as family heirlooms, artwork, or collectibles, a prenup could help ensure that such property remains solely yours no matter what happens to the marriage.
You plan to make financial sacrifices
A prenup not only protect a wealthy spouse from losing their property in case the marriage ends, but also safeguards the financial future of a spouse who is forced to make financial sacrifices in the course of the marriage.
This is usually applicable cases where one partner decides to put their career on hold to raise the kids, or pays for their spouse's education. A prenup can help ensure that such a spouse will receive alimony or other financial compensation from their partner in case of a breakup. For more informaiton, talk to an attorney like Blumenauer Hackworth.