A few reasons to consider a prenup:
Prenuptial agreements can help protect your assets in the case of divorce or death. You can designate that certain property will be considered your own separate property and not subject to any claims by your spouse.
Prenups can protect family inheritance and your children’s interests in your efforts and assets.
A prenuptial agreement can also provide clarity and a plan about how to distribute property if spouses divorce in the future. This way, there is as little contention or dissipation of financial assets and property as possible.
As divorce rates in the United States continue to hover between 40 – 50%, prenups are becoming increasingly common for couples of all financial standing. In addition, engaged couples are more commonly obtaining prenuptial agreements as a way of deciding for themselves how their property and assets would be divided in the event of a divorce or death.
Simply put, a prenuptial agreement provides clarity in a new marriage.
If you do not have a prenuptial agreement and you get divorced, state law determines how your property will be divided.
There are a two different ways (generally speaking) that states divide property: Community Property states vs. Equitable Division states. In community property states, the property you earned or acquired during the marriage may be subject to a 50/50 split. Only nine states are considered community property states. In the remainder of states, that operate under “equitable division,” marital property may be subject to a fair distribution of the property between the parties, but not necessarily an equal split. How “separate property” and “marital property” are determined is often dependent on each individual situation, including length of marriage, and is often not as cut and dry as you may imagine. The courts have tremendous discretion when determining the division of property, and each state’s laws are different.
All content provided in this article is for informational purposes only. HelloPrenup, Inc. (“HelloPrenup”) makes no representations as to the accuracy or completeness of any information on this site. HelloPrenup will not be liable for any errors or omissions in this information nor for the availability of this information. These terms and conditions of use are subject to change at any time and without notice. HelloPrenup provides a platform for contract related self-help. The information provided by HelloPrenup along with the content on our website related to legal matters (“Information”) is provided for your private use and does not constitute legal advice. We do not review any information you provide us for legal accuracy or sufficiency, draw legal conclusions, provide opinions about your selection of forms, or apply the law to the facts of your situation. If you need legal advice for a specific problem, you should consult with a licensed attorney. Neither HelloPrenup nor any information provided by Hello Prenup is a substitute for legal advice from a qualified attorney licensed to practice in an appropriate jurisdiction.