How Prenuptial Agreements Protect Your Assets
A marriage is a lifelong commitment between two people who are looking to navigate their lives together. During the course of a marriage, it isn’t uncommon to start a business, have children or experience other major life events. If the marriage ends, it could result in protracted battles over who gets assets or gets custody of the kids. It could also have major ramifications for a person’s estate plan, which can be dealt with proactively by creating a prenuptial agreement.
Are You Bringing Assets Into a Marriage?
As people get married later in life, they are more likely to have assets like a 401(k), a home or a business that they started prior to the marriage. Creating a prenuptial agreement may make it possible to shield those assets from being divided in a divorce. It can also make it possible to stipulate what happens to any appreciation that happens during the marriage.
Do You Have Beneficiaries in Mind?
Let’s say that you have a child from another marriage to whom you want to transfer your home. Without an agreement stating otherwise, it may go to the surviving spouse upon your death. This is because a spouse generally gets any assets that the other leaves behind. A prenuptial agreement can contain language stating that your future husband or wife waives the right to inherit certain assets in favor of your preferred beneficiary. An estate planning attorney in Las Vegas may be able to help review beneficiary designations with you.
Agreements Can Be Reached After the Wedding as Well
If you didn’t create a prenuptial agreement, a similar pact can be reached after the marriage is official. Regardless of when it occurs, make sure to have an agreement reviewed by an attorney. This may increase the chances that it is seen as valid by a divorce court, and it can increase the chances that it adheres to state law.