Love is a wonderful thing. And when you meet that “special someone,” you can probably look forward to spending the rest of your life with them. But not all marriages last a lifetime.
A prenuptial agreement is a legal contract that soon-to-marry couples sign to define the terms of the marriage and separate marital property from personal property in the event of a divorce. Done right, a prenup can ensure fair property division and reduce the stress and conflict that come with the divorce. But how do you know a prenup is right for you?
Here are two instances when signing a prenup before tying the knot can make perfect sense:
When you have children from a previous relationship
If either party has children from a previous marriage, you need to consider signing a prenup. While you may not address child custody and child support in the prenuptial agreement, there are ways a prenup can protect your children.
For instance, you can draft a prenup to preserve property and future income for the children you are coming into the marriage with. In other words, a prenup can shield your children’s inheritance and future support from divorce proceedings. Without a prenup, any property you have might be included in the marital estate and subjected to equitable distribution per Michigan marital property laws.
If either party has significant assets
It is not uncommon to come into the marriage with substantial assets (finances, a successful business, real estate or other investments). In this case, it is prudent that you sign a prenup to separate such assets from the marital estate.
Likewise, if your soon-to-be spouse is coming into the marriage with significant debt, then signing a prenup can shield you from paying a debt that you had nothing to do with during the divorce.
Protecting your interests
A prenuptial agreement might be the least romantic subject to raise while planning your marriage. However, signing one can save a lot of stress in the event the marriage fails to work.
