What comes to mind when you think about creating a prenuptial agreement?
For many people, this is all about protection in the event of divorce. And while that’s a big deal, don’t overlook the way in which a prenuptial agreement can help in regards to estate planning.
Let’s start with some of the basic reasons to create a prenuptial agreement:
- To protect assets that you bring into your marriage
- To protect against taking on some of your ex’s debt in the event of divorce
- To reduce the risk of future conflict (and speed up the divorce process)
There are also benefits from an estate planning perspective.
For example, with a prenuptial agreement, you can protect the inheritance rights of any children you have from a previous relationship.
Even though you’re building a new life with your new spouse, this doesn’t mean you should leave your children out of your estate plan.
Also, a prenuptial agreement is designed to make the divorce settlement process easier on the both of you. And that can also have an impact on your estate plan.
For instance, if you brought a large number of assets into your marriage, a prenuptial agreement can ensure that they’re not subject to property division if you divorce. You can then make a decision as to what will happen to these assets upon your death.
Note: if you didn’t get around to creating a prenuptial agreement before you tied the knot, you still have the option to create a postnuptial agreement. This works in the same way, with the primary difference being that you create it after you get married.
If you have any questions or concerns about a prenuptial agreement and the impact on estate planning, contact us to learn more. We’ll do whatever it takes to give you peace of mind.