Many people have misconceptions about a prenuptial agreement (sometimes called prenup or antenuptial). Most often, prenuptial contracts protect the interests of existing children or partners in family businesses. Other times, it protects the higher income earning spouse.
Postnuptial agreements (those entered into after the parties marry) are mainly used to protect the financially responsible spouse from the overspending spouse or as a way to memorialize the agreement of a reconciliation between the parties after one party's transgression broke the party's vows.
You do not need to be a Hollywood celebrity or millionaire banker to benefit from a prenup. Many people entering a second marriage, having children from previous relationships or having family properties find them helpful. It makes sense, even if it isn't romantic. If money conversations are too uncomfortable or challenging to encounter before the marriage, wait until the couple discovers what those conversations are like during the marriage. Conversations between engaged couples that ensure both parties understand their rights and obligations clearly from the very beginning will benefit the marriage like nothing else can.
Prenuptial Agreements
An appropriately crafted prenuptial agreement can designate certain assets as separate, so they would not be subject to division in divorce, and ownership would be clear for inheritance purposes.
Both parties may be similarly situated, and there is a likelihood of acquiring significant family-owned assets such as vacation property, closely-held stock, or professional practice. They may have intentions to keep them separate. Nevertheless, it can be essential to agree upon that characterization in writing. Doing so can not only prevent later misunderstandings; it can keep the title to these assets clear, which can be important when they are sold or insured.
We recommend creating any prenuptial agreement well before your wedding date to give you and your intended time to plan and ensure that the romance remains on the big day. Each party should retain an attorney to protect their interests.
Postnuptial Agreements
Postnuptial agreements are gaining in popularity as financial tools for couples who are already married. These agreements (sometimes called marital agreements) memorialize financial decisions such as setting budgets or keeping a spouse's business assets and liabilities separate from the couple's finances.
Just as with prenups, both parties should retain a Georgia attorney experienced in drafting marital agreements to protect their interests.
Contact our qualified divorce and family law attorneys today.
