Prenuptial agreements aren’t only for the rich and famous. It’s a good idea for all individuals carrying assets into a marriage to use a prenuptial agreement as a means of protecting assets in the event of a divorce. These contracts can make the division of assets easier by clearly assigning certain assets to one spouse, reducing the time a couple spends in litigation.
Prenuptial agreements are particularly important for individuals with significant assets, such as businesses or large investments. However, what also needs to be determined is whether the appreciation of a value of an asset is assigned in its entirety to one spouse, or if it is split between both parties. Unless this is clearly outlined in the prenuptial agreement, your spouse may be entitled to half of its worth, and possibly more.
But a prenuptial agreement can also protect you from financial damage incurred by your spouse, particularly in the form of debts. Creditors can go after marital property, including even a business, to cover the debts of your spouse. Prenuptial agreements can protect you from losing certain assets you bring into a marriage if your spouse goes into the red.
Pittsburgh property division attorneys note that prenuptial agreements are not necessarily set in concrete. The language needs to be clear and easy to understand, and even then it is possible that your spouse’s legal team will contest some of the conditions of the prenuptial agreement. Consult your legal team to prepare yourself for the divorce proceedings that will address the prenuptial agreement and assess the contract’s legitimacy.
Source: Forbes “Protecting Your Business In A Divorce: Pre-Nuptial Agreement” Nov. 2, 2011
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