Thursday, August 21, 2008

Just a Reminder: Prenuptial Agreements Have A Purpose

From Best Syndication comes Purpose of Prenuptial Agreements. Some good reminders of points I have brought up before.

"To be specific, prenuptial agreements are signed and notarized contracts that draft how financial aspects of a marriage will be handled. Although they’re not very exciting, having an honest financial discussion before a wedding can be a genuinely beneficial and positive experience."


Prenuptial agreements help spouses face their financial matters. Ambitions shouldn't be the only thing you two discuss. Discussing your current financial situation is not only important for your spouse, but is important for you too. There shouldn't be any secrets between spouses; to me not using a prenup indicates a lack of trust, not the other way around.

Another benefit to using prenuptial agreements is that they allow spouses to preserve family ties and inheritance. For some people, prenups are essential just for this reason. For example, if you had two children before marriage, you can ensure that assets you've set aside for them are protected. No probate court could dictate those assets be transferred to the other spouse.

Prenuptial agreements are also beneficial for protecting a business owner’s business asset. Often times spouses will fraudulently claim they have a stake in the other spouse's business, and probate courts often fall for it. Even my aunt was able to get thousands of dollars a week this way by claiming a stake in her ex's business. Using a prenup to describe a spouses accumulated business asset's before marriage will ensure their stake in the business is protected. If your spouse did want to help out with the business later on, you could always use a partnership agreement.

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