What is a Premarital Agreement?

A premarital agreement, also known as a prenuptial agreement, is a legal contract that is created before marriage. This document outlines how assets and debts will be divided in the event of divorce or death. It is a way for couples to plan and protect their financial interests before entering into marriage.

Why Create a Premarital Agreement?

Couples may choose to create a premarital agreement for various reasons:

• Financial Planning: It allows couples to outline how their finances will be managed during the marriage and in the event of a divorce.
• Asset Protection: It helps protect individual assets that were acquired before the marriage.
• Debt Division: It specifies how debts will be divided between the spouses.
• Divorce Protection: It can simplify the divorce process by addressing financial matters beforehand.
• Spousal Support: It may include provisions for spousal support in case of divorce.

Creating a Premarital Agreement

A premarital agreement is a legal document that must be carefully drafted by both parties with the help of lawyers. Each party should fully disclose their assets and debts, and the agreement should be fair and reasonable to both sides. It is important for couples to consider creating a premarital agreement as part of their overall relationship and financial planning.