Very few people entertain notions of divorce when getting married. However, divorce is common enough that a bit of preparation makes sense.
That is where prenuptial agreements come in. A prenup can lay out terms for dividing assets during a divorce, contain clauses regarding spousal support, and provide clarification on who owns what. According to U.S. News & World Report, the following situations warrant the creation of a prenup.
You are entering the marriage with more wealth than your spouse
If you own a business or expect to inherit large sums of money from your family in the future, a prenup is a must. Without one, there is a chance that your spouse will attempt to claim these assets should you get divorced in the future. Even if the court does not agree, prenup will save lots of time and money on a drawn-out divorce proceeding.
This is not your first marriage
If you have gone through divorce already, you know that the process is often challenging. It is better to address asset division while you are still on good terms with your partner, so that everyone is on the same page.
You have children from a previous relationship
Prenups are also useful when both spouses have children from previous relationships. You can use the document to spell out your intended inheritance to your children, while your soon-to-be spouse can do the same.
It is important that your prenup is enforceable and legally binding. You must also ensure that your spouse entered into it freely and without due pressure. Courts take great pains to verify the validity of these agreements to ensure fair treatment to both parties.