When it comes to planning your life with your future spouse, there is much to consider; the wedding, buying or building a house, raising children, blending families, and retirement. These are all major life events which can consume a lot of your time.
However, there may be one item you aren’t considering: a Prenuptial Agreement.
When it comes to a Prenuptial Agreement, there are many reasons to consider one. Here are a few of the questions that are often asked:
What is a Prenuptial Agreement?
A Prenuptial Agreement is an agreement made before two potential spouses are married. The agreement usually states how the couple will handle all of their assets and financial decisions during the marriage. It also covers how the same issues will be handled in the event the marriage ends, as well as at the death of both of them.
What Can a Prenuptial Agreement Do?
A Prenuptial Agreement can address many issues and should work WITH your Estate Plan, not against it. Some of the areas a Prenuptial Agreement can cover are:
- If there is property involved in the divorce, it can spell out who gets what property. It can also address how the process takes place. This will help each spouse know what their estate will be and what adjustments are necessary to their Estate Plan at the conclusion of the divorce.
- Children from another marriage and how their inheritance will be affected? These are issues that a Prenuptial Agreement can answer and set out so that both spouses will know exactly what will happen with their estate and their children.
- Creating a Last Will and Testament that guarantees the terms of the Prenuptial Agreement are carried out. It can also be used in to prevent a Last Will and Testament contest from occurring.
- If there is a life insurance policy, who receives the benefits can be set out by agreement to prevent disputes later.
- If there is a business involved, how will the business be affected by divorce or death of the spouse who owns it? Not only will this smooth the transition, it will also reduce the stress which can be created by the uncertainty of death or divorce.
- In the event of divorce, the Prenuptial Agreement can address the issue of maintenance or alimony, specifying who will pay, if any, and what amounts to be paid, if any. A maintenance or alimony obligation may require an adjustment to your Estate Plan which should be addressed immediately.
- The Prenuptial Agreement can also provide a life estate or the right to live in the other spouse’s premarital property while protecting the inheritance to the children of the deceased spouse.
Does a Prenuptial Agreement Mean I Don’t Trust My Future Spouse?
No one goes into a marriage planning to get a divorce, but creating a Prenuptial Agreement can go a long way towards decreasing confusion and pain if one occurs. In addition, it can provide assurance that your estate will be distributed as you desire.
Finances are often a topic people, especially those planning their life together, like to avoid. But, by looking at it as a business decision, it just makes sense. A well thought out, clearly prepared Prenuptial Agreement in Kentucky can do more than prepare you for divorce…it can also become a guideline for your future financial goal-setting.
In most cases, this discussion should in no way reflect on the trust and love between you and your future spouse.
Ready to start the discussion? Contact a knowledgeable attorney that can guide you through the process, and give you clear answers to your questions.