Most people know that a prenuptial agreement is a contract that exists between two spouses. This contract is signed by both spouses prior to the commencement of their marriage and addresses how financial matters will be dealt with in the event of a divorce or legal separation.
While most people know what a prenuptial agreement is, few really understand why it is appropriate to enter into such a contract before marriage. Below, our firm provides three reasons why people should think about creating a nuptial agreement:
People may wish to protect their wealth. This is especially true in cases where one spouse has more wealth and material assets than the other spouse.
People who own businesses want to protect their earnings. When people put so much time, energy and effort into their businesses before marriage, they rarely want to share their success with spouses after a divorce.
People may not want to take on their spouse’s debts. Just as people do not want to share their income after a divorce, they also do not want to have the responsibility of paying off their spouses’ debt.