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When should you have a prenuptial agreement?

On Behalf of | Nov 30, 2022 | High-conflict Divorce

Some couples in New Jersey who want to get married might want to protect their finances. A prenuptial agreement can achieve that, but if you are considering one, you should know what situations deem it necessary.

Understanding prenuptial agreements

A prenuptial agreement is a legal contract presented by one person to another before they get married. The purpose of the document is to protect assets and property in the event that the couple eventually gets a divorce. It outlines which property remains separate and what’s considered jointly owned. Sometimes, there are also expectations laid out in a prenup for certain aspects of the marriage. For example, it might state how children are to be raised.

Reasons to have a prenuptial agreement

Prenups are often a sore spot among people, so some skip getting one. However, there are a variety of reasons why you might want to have one created before walking down the aisle. One party often gets one when they’re wealthy and want to protect their finances.

Some parents who remarry have a prenuptial agreement created in order to protect children. It ensures that there are no disputes over anyone’s inheritance. Prenups are also helpful for avoiding debt incurred by one spouse during the marriage. If you end up divorcing, you won’t have to worry about being responsible for any portion of the debt.

Even if a person has no children, they might want to get a prenup as protection because they’ve been married once before. If someone had a negative experience in their first marriage and their spouse took a sizable amount of their assets and property as part of the divorce settlement, it might scare them into wanting a prenup if they remarry. Individuals who own businesses may also want a prenup to protect the value of their company in case they ever divorce.