Prenuptial agreements are not just for the rich. Instead, there are several scenarios in which this legal document can protect the vested parties in a possible divorce. Learn more by checking out these six situations in which a prenuptial agreement may be in your best interest.
1. When Either Party Has a Considerable Amount of Wealth
Possession of a considerable amount of wealth is one of the most common reasons that couples choose to enter into a prenuptial agreement before marriage. Entering into this legal agreement before marrying lets you clearly define the rules for how wealth will be distributed in the event of a divorce. This rule also applies if one party earns more than the other at their job.
2. If Either Party Owns a Business
If either you or your spouse owns a business, you may want to consider a prenup before getting married. Not only can this legal document protect your business and allow for proper allocation of its assets in the event of a divorce, but it can also define parameters on business operations and liability during the course of your marriage.
3. If Either Party is Entering a Second Marriage
Parties heading into their second marriage are strongly encouraged to sign a prenuptial agreement before their wedding. Failing to do so could jeopardize the inheritance of your children, the remainder of your retirement account, or any other assets you managed to keep after your first marriage.
4. When One Party Has Substantial Debt
Debts, like assets, are joined when you marry. Sign a prenup and you do not have to assume your spouse’s premarital debt. Instead, the debt that belongs to them stays with them, should the two of you ever go through a divorce.
5. If Either Party is Raising Children
Children (and their financial well-being) needs to be carefully protected in the event of a divorce. This statement is particularly true for children who have already been through one family separation; their futures are already at risk, so protect them in every way that you can.
6. If Either Party Enters the Marriage with a Pet
If you or your spouse enters the marriage with a pet, you may want to consider signing a prenuptial agreement that would determine who gets it if a divorce occurs. Even if you own the animal, courts now allow divorcing couples to petition for partial “custody” of the animal.
7. If Either Party Owns Intellectual Property
Intellectual property may not have much value on its own, but it has the potential to bring in earnings for the owning party. In the event of a divorce, the owning party could be forced to share that wealth. Protect your intellectual property (and any resulting income that it may earn) with a prenuptial agreement.
Contact Our Wheaton Family Law Attorneys
If you are getting married and want to discuss the option of a prenuptial agreement, contact Davi Law Group, LLC for assistance. Our seasoned DuPage County family law attorneys are some of the most trusted in the state. Call 630-580-6373 to schedule your personalized consultation with us today.