Should My Future Spouse and I Consider Creating a Premarital Agreement?
While it isn’t a particularly romantic idea to consider before getting married to someone you love, a large share of marriages do in fact end in divorce. While, ideally, you’ll never need to use it, a premarital agreement can offer peace of mind to both spouses regarding how a divorce might be resolved and what you could expect. If you’re planning to get married, consider whether any of the following excellent reasons to create a premarital agreement might apply to you and your future spouse.
You’re entering into a second marriage
If you’re about to get married for the second time, a premarital agreement could be especially useful for several reasons. For one, the divorce rate tends to be higher for couples who are marrying for the second time, so there are greater chances that you will get divorced, and will want that process to be rendered simpler and less expensive with a premarital agreement. Second, if you’re no longer in your 20s, you may have accrued greater wealth, which you want to protect from dissipation in a divorce. Third, if you have children from a prior marriage, a prenup offers you a way to protect the inheritance you hope for your children to receive someday.
You wish to ensure that certain property remains separate
If you’re the owner of a small business, a well-crafted premarital agreement can ensure that the business remains separate property throughout your marriage, preventing you from having to either operate the business while your ex holds a share of ownership or dissolve the business to divide the value in the event of a divorce. You can also ensure that other significant assets remain separate, such as a home or personal goods that you want to retain. Additionally, if your future spouse is coming into the marriage with a great deal of debt, a premarital agreement can ensure that you do not become responsible for that debt.
You want to know what you can expect to pay or receive in alimony
The most common reason for a premarital agreement is to ensure that the wealth you’ve spent your lifetime building is not lost in a divorce. A premarital agreement can also offer peace of mind to the less-wealthy spouse that they will receive a certain amount of alimony after a divorce that will allow them time to become financially independent, thus offering assurances to both spouses regarding the financial consequences of divorce.
If you would like to discuss how a premarital agreement could benefit you before your marriage in Kentucky, contact the experienced and knowledgeable Louisville family law attorneys at Gwin Steinmetz & Baird PLLC for a consultation, at 502-618-5700.