You may have heard the term “prenup” before. Usually in the context of someone definitely needing one as a financial safety net in a relationship. However, what does it actually entail? And is it beneficial for both parties? Here are the 5 things you need to know.
Children. Prenups may be used to make sure your children get their fair share of assets when you pass. This is especially relevant if you have children from prior marriages. If there is no prenup in place, the surviving partner may have the right to the vast majority of your assets, leaving much less for your children.
Financial rights. It doesn’t matter what your financial situation is. A prenup is not only for the rich. Many like to clarify their responsibilities and financial rights during a marriage.
Arguments during divorce.
By listing out exactly how they would like their property and other assets to be divided, the couple could prevent major disputes in case of a divorce. Another moment that can be specified in a prenup is whether or not either partner will receive alimony.
Protection from debts. Prenups can also be used to protect you from other party’s debts.
So you decide you want a prenup. Firstly, you should keep your prenup updated. If any marital change occurs, the prenup might need to be updated. You also should be very precise. Whatever arrangement you want to agree on, make sure that it is clearly written and precisely outlines the terms of the agreement. Detail is key.
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