Lately, there has been much talk about prenuptial agreements. They are becoming more commonplace among Minnesota couples of all income levels and are no longer reserved for those of celebrity status. While prenuptial agreements offer many benefits to couples entering a marriage, they're not necessary for everyone. Read on to find out the situations in which a couple should consider a prenup.
Not everyone has a lot of assets, but many have one or two specific assets that they want to protect. They may be expecting an inheritance in the near future or want to make sure that their future spouse doesn't get a hold of a sports car, expensive piece of artwork, family heirloom or other asset with sentimental value. A prenup can be used to protect assets such as these.
Business owners have a lot to lose in a divorce and may want to ensure that their businesses stay intact should their marriages go south. A prenup can keep an ex from taking a huge chunk of the business and, instead, offer other assets. A prenup can protect intangible assets as well, such as patents, copyrights and other intellectual property.
Many people enter marriages despite a partner having thousands of dollars of debt. Prenuptial agreements can protect the spouse who is not in debt so they don't have to take on the debt in a divorce. A prenup can also ensure that children from previous relationships receive their share of assets in the event of one's death.
Prenups can be used to protect a variety of assets and are especially useful for those with valuable property. Those who come into a second or subsequent marriage with children may benefit from a prenuptial agreement as well. Those with concerns may wish to consult with a lawyer before saying "I do."
Source: Cheat Sheet, "5 Reasons You Might Want a Prenup," Megan Elliott, April 11, 2015