If you are about to get married and have been jolted from the fairy tale by the term ‘prenup,’ then this article is for you.
We put together a comprehensive, short-form guide to help you navigate the complex process of prenuptial agreements. Want to know what your rights and responsibilities are? Read on to find out.
Read This Guide Before You Tie the Knot!
A prenup will typically contain a list of all the assets either person involved in the engagement has. The point of it is to allocate how these assets will be distributed in the event of the two of you breaking up. Since roughly one in every one thousand couples will break up; it makes sense to protect your assets financially should the worst happen.
Couples draw up prenups when they think they have significant assets to risk by marrying the other person.
They might also use it to protect intellectual property or business. It is essential to understand that being presented with this legal document is not an insult to you. It is merely a way for a person to protect the things they have worked hard to achieve on their own.
The Benefits of Drawing Up a Prenuptial Agreement
There are some benefits to drawing up a prenup with your partner. You may want to:
- Protect the inheritance of children from a previous marriage. A prenup can be used to secure their future as well as your own.
- Protects you against your partner’s debts – you don’t want to inherit nasty financial messes with your new marriage.
- Can clarify every asset’s worth and ownership in the event of a divorce.
- It can also protect you if one partner is significantly better off than the other.
What Happens If I Don’t Sign a Prenup?
Nothing. There is a high chance that your partner won’t want to proceed with the wedding if you can’t come to some agreement though. If you go ahead with the financially without arranging a prenuptial agreement you do run the risk of inheriting some of your partner’s debts, sharing property in divorce proceedings that may have been yours before you married, and even being left with financial burdens you did not know before you decided to wed.
Not signing a prenup, or not arranging one before you wed, leaves you open to all of the financial risks associated with legally being considered one financial entity. No matter how much you think you know your partner, they may have debts ranging back from through the years about which you know nothing. When you get a prenup, you skip this risk and move straight on to the happily-ever-after part.
Legally though, if you choose not to sign the Prenuptial Agreement, nothing will happen to you. You won’t be liable for anything, and your rights should be as they were.
How Do I Get a Prenup?
You can put together a prenuptial agreement by yourself but, if you want it to be airtight enough to stand up in court, then you had better get a lawyer to draw it up on your behalf. A family lawyer should be familiar with this type of legislation in your region and ought to be able to guide you through the process.