5 Benefits Of A Prenuptial Agreement
A prenuptial agreement is written by two people in contemplation of their marriage and can govern:
- how they will deal with their family finances during their relationship
- how their property will be distributed at the end of the relationship (in the event of a separation or upon the death of one spouse)
- spousal and child support in the event of a separation.
A prenuptial agreement cannot deal with issues of child guardianship or parenting responsibilities.
The best time to negotiate a contract relating to your relationship is when your relationship is in a good place, which makes a prenuptial agreement an excellent option. Our family lawyers are ready to help you determine if a prenuptial agreement is right for you, book a consultation today.
Here Are 5 Benefits To A Prenuptial Agreement:
1. Protect Your Business
A divorce or separation can have a devastating impact on a business owned by one of the spouses, if you are not prepared. A prenuptial agreement can be used to ensure that your business is not financially impacted by a divorce.
2. Protect Your Children From A Previous Relationship
If you were previously married, you may have spousal or child support obligations that must be accounted for both during your new marriage and after it ends. You may have specific assets that you want to preserve for a child from your first marriage. You definitely want to ensure that your property is divided according to your wishes upon your death and that all of your dependents are provided for. A prenuptial agreement can help to accomplish all of that.
3. Protect Yourself And Your Spouse
A prenuptial agreement can protect both spouses, particularly when there is a significant disparity between their financial situations. Many people assume that a prenuptial agreement is used to protect the spouse with the most property from having to share those assets in the event of a divorce, but it can be used to protect both spouses by:
- providing an allowance for the spouse with the weaker financial situation during the relationship
- stipulate that the parties will divide their financial obligations in such a way that enables the spouse with the weaker financial situation to save for their future
- providing for a fair division of assets in the event of a separation
- providing for spousal support for the spouse with the weaker financial situation in the event of a separation.
4. Give Both Spouses The Security To Leave A Marriage If They Want Or Need To
By taking away the financial uncertainty typical of the end of a relationship, you give both yourself and your spouse the freedom and security to end the marriage in the event that it goes bad. Staying in a marriage that is no longer functioning for strictly financial reasons can be harmful to the mental health of everyone involved, in particular any children that you might have. A prenuptial agreement can give you and your spouse the ability to make the best decision for your family at the time, without basing that decision on finances.
5. Avoid Many Of The Potential Financial And Emotional Impacts Of Divorce
Deciding to get a divorce can be a huge risk, both financially and emotionally. A prenuptial agreement can be used to mitigate many of these risks by avoiding financially draining legal fees associated with litigation or protracted negotiation at the end of a relationship, when feelings are high.
Contact Verhaeghe Law Office’s Edmonton Family Lawyers Today For Legal Advice
*Disclaimer: Important to note that this article merely provides a general overview of the legal topic, and is not intended to constitute legal advice. For legal assistance with family law matters, please consult an Edmonton family lawyer.