A prenuptial agreement is a legal document that many couples sign prior to getting married. There's also the option of creating a postnuptial agreement. Both of these documents protect the couple should the marriage end in divorce. Today, we will explore the benefits of a prenuptial agreement to the estate plan that you create with your spouse.
Prenuptial agreements work the best for estate plans that include incredible wealth and for couples who are getting married for the second or third time. Why? There's more at stake in these two scenarios compared to a young couple entering their first marriage with very little property or assets to their names.
The best situation for a prenuptial agreement is to have it work in conjunction with the estate plan you create. This will help protect the separate property you earned prior to the marriage and are bringing with you into the marriage so that your spouse does not take ownership of this property should the two of you get divorced.
Aside from protecting you in a divorce, a prenuptial agreement can also be used to protect you in death, or protect your spouse should you pass away. The prenuptial agreement can make it easier for your estate plan to protect your assets upon your death and make sure they go to the right people.
As you can see, creating a prenuptial agreement is an important part of planning your life and putting together your estate plan. Make sure you have a trusted attorney by your side who can answer any questions you might have regarding your prenuptial agreement and estate plan.