Burbank prenuptial agreement lawyers
Prenuptial agreements have for a long time been associated with the wealthy. However, such agreements are becoming commonplace among those who live from paycheck to paycheck.
A prenuptial agreement is important because it helps in managing or avoiding future conflicts. https://www.divorcemag.com/articles/4-reasons-to-consider-a-prenuptial-agreement
What is a prenuptial agreement?
a prenuptial agreement is a legally binding agreement between two people concerning how assets will be divided in case of a divorce. It is up to the two individuals to decide what should and should not be included in the contract.
Before drafting a prenuptial agreement, both spouses must take stock of their assets, in terms of assets and liabilities.
The spouses may also decide that any property they have acquired before tying the knot will remain separate for each party. https://www.nolo.com/legal-encyclopedia/prenuptial-agreement-lawyers-30035.html
What should be included in a prenuptial agreement?
Each couple has their own specific prenuptial agreement. There’s no specific or standard prenuptial contract. It is therefore important to look at your social and financial situation before drafting the agreement.
In a world dominated by social media platforms, most couples often include provisions in the contract that prohibit the other spouse from sharing personal issues about the relationship, on social media.
Below are some of the terms you can consider including on in the contract:
• How the two of you will handle business and retirement assets
• Use of alternative dispute resolution in case of a divorce
• Differentiate between separate and marital property
• Who will remain with the marital home if you divorce
Importance of a prenuptial agreement
There are various reasons why it is advisable to have a legal-binding agreement, right before you get married. Let us take a look at some of the reasons.
1. You could be marrying someone with a lot of debts
It is common today for people to marry or get married as a way of salvaging themselves huge debts. The unfortunate thing is that in most cases the other spouse isn’t aware until they are married.
It is important to openly discuss the financial situation of each other, before signing the marriage papers. You should agree whether the two of you will inherit the debt or not in the prenuptial agreement. This will make things easier during a divorce.
2. Protecting your assets
In some states, a prenuptial agreement may be used to bypass property division laws and child support. A couple can specify in the contract how common and separate property should be divided if a divorce happens.
You will however need the services of a good divorce lawyer to advise you on how to go about the entire process. Most divorce lawyers will tell you that property division is simple and short if there’s a valid prenuptial agreement.
3. Financial security for spouses
There’s no doubt that a prenuptial contract can elicit a sense of financial security, particularly if one partner is richer than the other.
The richer spouse will definitely want to protect his or her assets and reduce the duration and amount of spousal support in case of a divorce.
Similarly, the less wealthy spouse would want to be protected, financially if the marriage doesn’t last. The agreement should, therefore, be formulated in a manner that offers a win-win situation for both spouses.
4. Protecting your business
There’s no business owner who would wish to put his or her business at risk if a marriage doesn’t work. This is one of the reasons why a prenuptial agreement is very important. What if someone is marrying mainly because of your finances or business?
Without a prenuptial agreement, it means you will have to let go of a big chunk of your business. A non-owner spouse can end up claiming more shares than you, depending on the circumstance of the divorce and how many children you have.
Besides that, a divorce can literally bring your business into a standstill, if things are not resolved amicably. For example, your spouse may seek a court order to fire a whole board of directors or stop the business from running, while the property distribution case is ongoing.
Prenuptial agreements have become common for most couples. Considering the increased number of divorce cases, it would be important to have a legally-binding document before you sign the marriage papers.
This will help in protecting your assets or business, in case of a divorce. You won’t have to spend months or years, in a property division lawsuit.