A prenuptial agreement is a binding legal document that ascertains how assets are to be distributed in the event of a relationship split. While raising the idea of drawing up a prenuptial agreement can be a touchy subject, it is often a good document to have just in case.
Prenuptial agreements are particularly useful if either partner has children from a previous marriage, owns real estate property or a significant number of assets such as shares.
Getting a lawyer to help you write up a prenuptial agreement can give both parties some assurance and security. It can also be helpful in allowing both partners to voice their wishes. Here are some benefits of having a prenuptial agreement!
Special provisions
By drawing up a prenuptial agreement, both parties can specify special provisions in the division of their assets. If either parties have children from a previous marriage, they may have certain heirlooms they wish to pass down to a particular child.
In this way, binding financial agreements are beneficial as they recognise unconventional families and allow for assets to be divided fairly.
A prenuptial agreement allows for particular circumstances to be specified. You are also able to account for future events when drawing up a prenuptial agreement.
Emotional reasons
Some people might not need a prenuptial agreement, but might feel obliged or gain an emotional benefit from drawing one up.
For example, if one party wants to avoid being labelled as marrying for money, they might wish to have a prenuptial agreement for that reason.
Property protection
By drawing up a binding financial agreement, a couple will be encouraged to communicate and set boundaries for their assets. This is beneficial as it creates a higher level of transparency between the two parties.
In the event of a separation, both partners know that their property and assets are protected. This will create a level of security for an individual’s assets.
Save costs in the future
A binding financial agreement can save you immense financial costs in the future. In the event of a separation, you know that the property settlement process will not be long and drawn out as you already have a prenuptial agreement in place.
This will save you a lot of time and effort and make the process go much easier for both of you.
While drawing up a prenuptial agreement isn’t the first thing on the minds of the newly engaged, it has a lot of benefits that should be considered!