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There are a number of benefits to having a prenuptial agreement. The benefits in your case depend on your assets, liabilities and the things that you want to achieve during your marriage. There are many reasons that having a prenuptial agreement can benefit your marriage:
1. You can identify separate property
One of the reasons to have a prenuptial agreement is to figure out what’s part of the marital estate and what’s not. You can use a prenuptial agreement to make sure that you’ve fully disclosed to the other party what assets you’re bringing into the marriage. Then, you can agree on what’s going to stay separate property and what can become marital property.
2. Clarifying expectations
At first glance, most people assume that a prenuptial agreement hurts a marriage. In fact, the opposite can be true. A prenuptial agreement requires the parties to openly talk about their expectations for marriage. They have to create a plan for finances during the marriage as well as in the event of a divorce. Putting it all on the table up front can actually help each party enter the marriage with open eyes and a sound mind knowing that they’re fully aware of what they’re getting into.
3. Reduce conflict during a divorce
A divorce is a stressful time regardless of the circumstances. When the parties know exactly what’s going to happen in the event of a divorce, it can reduce the stress and anxiety that comes with the process. Many of the things that happen during a divorce are things that are designed to help identify the party’s assets and make the case for why the court should give each party a certain share of the marital assets.
With a prenuptial agreement, a lot of these points are moot. Of course, a prenuptial agreement can’t decide child custody or child support. However, many other issues of divorce conflict are on the table. The parties can have peace of mind entering into a marriage knowing that they’re taking steps to resolve conflict if it comes to a divorce.
4. Reduce costs during a divorce
Getting divorced is expensive. This is especially true when there are significant assets in play. Creating a prenuptial agreement can help resolve some of these expenses. By reducing conflicts during divorce, the parties can save costly attorney fees and resolve the matter with less angst than they might have otherwise.
5. Maintain privacy
A prenuptial agreement can offer the important benefit of privacy. You can draft an agreement that prevents each spouse from disclosing financial or personal information. When the parties have significant financial assets or even a small business to protect, a confidentiality agreement can be a great way to give each spouse peace of mind. A confidentiality agreement can also prevent spouses from making embarrassing social media posts. The spouses can agree on a penalty for violating the privacy clause.
A prenuptial agreement requires the parties to think ahead. By talking things out before the marriage begins, the parties can enter into their marriage on the same page about major issues and with clear expectations for their upcoming nuptials. Although negotiating a prenuptial agreement might seem uncomfortable, ultimately it can give the parties privacy, peace of mind and security.