In the past, prenuptial agreements had a negative association with marriage. However, you may have noticed that their use has grown recently in popularity.
There are many reasons why you see prenuptial agreements becoming more common nowadays. Here are four key reasons why you should consider having a prenuptial agreement.
Your marital property is clearly defined
In a divorce, you divide your property between you and your former spouse. Specifically, your marital property is what the courts consider.
A prenuptial agreement can clearly define what you and your spouse consider marital property. This type of clarity can help avoid bitter disputes and could make your division process smoother during a divorce.
You can have a truthful financial conversation
Prenuptial agreements require a candid conversation about your finances with your soon-to-be spouse. This open and sincere communication can start your marriage off positively from the beginning.
You can separate your business
In the case that you own a business, your prenuptial agreement can protect your business assets from divorce. You can avoid potentially liquidating business assets as part of a divorce.
You can separate debt
If your spouse accumulates a large amount of debt, you can separate yourself from any debt ownership in a divorce. In a prenuptial agreement, you can designate the debt as solely owned by your spouse.
Prenuptial agreements can create a sense of trust and openness in your marriage. They are not meant to imply that divorce is imminent for you but can make a divorce a quicker and less combative experience.