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Why talking about prenuptial agreements is essential

| Dec 16, 2019 | Premarital Agreements

Few occasions bring joy to so many people’s hearts as engagements. No matter if they are romantic private proposals or huge events that thousands witness, everyone feels the magic of the moment. During this joyful and exciting time, few couples in North Carolina want to discuss finances and prenuptial agreements. However, doing so allows partners to be sure that they are on the same page as to how they will manage their finances after marriage and how issues will be managed in the event of a divorce.

When a couple has a prenuptial agreement, they can avoid the frustration and expense that comes from leaving decisions about dividing and distributing assets up to a judge. It allows a couple to put a customized agreement into place that they both think is fair. A few of the things that would be included in a prenuptial agreement include family trusts, inheritances and future gifts that will be received.

If a person has a business, a prenup would establish what portion of the company would be deemed marital property and how these assets would be distributed. The prenuptial agreement will protect the business. It should specify the premarital value of the business, how a spouse would share in profits or losses and if either partner would be designated to purchase the other out.

Having a prenup talk and signing the papers early in the engagement could give each partner peace of mind. It will also protect them if a court were to argue that the agreement was not enforceable because it was signed under pressure due to the impending ceremony. A lawyer could help a client draw up a legally binding document that would protect his or her assets.