Where do prenups come from? How do they work? Each and everything you require to know
Oct 20, 2021
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Prenuptial agreements (prenups) are tough to discuss with your partner, particularly at such a passionate and exciting period in your life. However, because divorce is so widespread in today's society, more people believe prenuptial agreements are required. According to current UK national data, 42 per cent of marriages result in divorce.What is a prenuptial agreement?
A prenuptial agreement (prenup) is a signed agreement that a couple enters into before they marry. There will be times when the thought of preparing for an event comes to mind. Many people are considering prenuptial agreements as a result of recent social media occurrences in the news. It's a common misconception that prenuptial agreements are only advantageous when one partner is wealthier than the other. A prenuptial agreement serves as an open channel of communication from the start of a marriage, greatly assisting in establishing open communication between the couples. A prenuptial agreement typically specifies all jointly and independently owned and operated assets (and debts) and determines how the couple would distribute this property in the event of divorce.
When should I make one?
The reasons for signing a prenuptial agreement:
- You own a company and want to make sure its future is secure.
- Your partner has racked up a lot of debt.
- You wish to ring-fence assets for your children from a previous relationship.
- You're marrying someone from another country but want to be protected from monetary awards given by a foreign court.
What are the advantages of signing a prenuptial agreement?
The following are the critical advantages of signing a prenup:
1-Asset protection is essential.
In addition to inheriting interests in family enterprises and other assets, a prenuptial agreement can operate as a 'ring fence' to protect whatever assets you had before the marriage.
2-During the divorce, you can save time and money.
During a divorce, emotions can erupt, affecting people's ability to reach fair agreements. If you draught a prenuptial agreement before you marry, you can save the uncertainty, time, and worry of having to litigate your finances if you separate or divorce.
3-Defiance against debts
If one party enters the marriage with considerable debts, the borrowing spouse can insulate themselves from the burden of repaying these obligations.
4-Transparency.
Both parties must give complete financial transparency when drafting a prenuptial agreement. As a result, from the start of the marriage, both parties will be aware of each other's assets and income benefits.
Whether you or someone you know is considering or has been asked to sign a prenuptial agreement, you should speak with an expert family lawyer to understand more about how a prenuptial agreement is interpreted.