Why Have a Pre or Post Nuptial Agreement?
Prenuptial/Postnuptial Agreements were once considered as somewhat ‘amoral’; presuming that a marriage will end in divorce and thus increase the chances of couples seeking a divorce. However, prenuptial/postnuptial contracts proved to be critical in avoiding acrimonious settlements and allowing couples to decide their own terms in the event of a divorce.
Prenuptial/Postnuptial contracts can be tricky, but all essential elements must be observed to ensure that a contract is legal and enforceable. In the event of the other party challenging the agreement during a divorce, the necessity of a watertight agreement is critical.
There are many reasons a prenuptial/postnuptial agreement is important, below are a few:
- Protecting your assets: The agreement will clearly define the distribution of assets in a divorce. You can choose to protect all or part of your assets. Without the agreement, the Courts will distribute all marital assets in an equitable manner.
- Deciding your own terms: Many couples choose a prenuptial agreement so they can decide on their own financial destiny. It allows them to set the terms on who gets what, without involving the Courts.
- Deciding on alimony: Contrary to expectations, a prenuptial contract is not meant to simply protect your assets. Most prenuptial agreements are drawn to achieve a fair distribution in the event of a divorce.