If you are preparing to marry in the near future, there are certain things you can do to protect your interests long-term. One of these steps can include drafting a prenuptial agreement. This may not seem romantic or necessary for your particular situation, but there are many benefits to this decision.
At its most basic form, a prenuptial agreement outlines how property division will work in the event of a divorce. However, these contracts can also include other things, such outlining the financial responsibilities of each person over the course of the marriage. If you do not have a premarital agreement in place, you would be wise to consider the protections it offers to many Michigan couples.
What does this agreement do?
The intent of a premarital agreement is to protect the interests of one or both parties in the event of a divorce. It can shield certain assets and eliminate the need for costly and stressful litigation during divorce proceedings. Some of the benefits a prenuptial agreement can offer you include the following:
- It can allow you to protect an inheritance you received from a family member.
- It can ensure that you will receive your fair share of marital property and even spousal support, if applicable to your situation.
- It can allow you to limit your financial obligations to your spouse in case of a divorce.
- It can allow a person entering a second or subsequent marriage to protect the interests of children from previous marriages.
While there are many benefits to a premarital agreement, there are limits to what this agreement can do. For example, some of the limits to these agreements include the following:
- It may limit your ability to have a rightful claim to any inheritance received by your spouse.
- It is impossible to predict how the terms of your agreement could impact you in the future.
- You may agree to terms that are actually not in your best interests.
As you draft your agreement and look for ways to protect your long-term interests, you will find it beneficial to seek experienced guidance.
Planning for the future is not as hard as you think
It may seem difficult to think about divorce before you even get married, but you do not have to walk through this process alone. With help, you can carefully consider ways to shield your future interests and determine whether a prenuptial agreement could be truly beneficial for you.