Many months of planning go into a wedding, but it’s also beneficial to plan the financial terms and structure of the marriage—something far more important than the walk down the aisle or the flavor of the wedding cake.
The creation of a prenuptial agreement isn’t the most romantic aspect of an engagement, but the benefits of a well-executed prenuptial agreement live long past the honeymoon and provide protection for both spouses for any eventuality—protections created when both spouses are at their most loving and generous toward each other. Discuss a prenuptial agreement with your family lawyer in Denver for a free consultation today.
Many people make the mistake of believing that a prenuptial agreement is solely a tool used during divorce; however, obtaining a prenup does not have to convey that either party expects the marriage to end in divorce, or even fears the possibility. Instead, a well-executed prenuptial agreement provides terms for how both spouses handle their financial responsibilities during the marriage.
A prenuptial agreement defines each spouse’s separate assets and prevents them from commingling and becoming marital assets. It may also include an important structure for how the spouses handle their finances; for instance, how they file their taxes and allocate their tax refund. It could define which spouse pays the mortgage or each spouse’s portion of the mortgage payments.
It may also set terms for informing each other of large expenditures and protect one spouse from the other spouse’s debts, such as student loans.
Financial clarity during a marriage eliminates many common arguments and conflicts that otherwise negatively impact marital relationships.
No one likes to think of a marriage ending before it ever begins, but it’s impossible to address a prenuptial agreement without confronting this critical aspect of the contract. A prenuptial agreement sets enforceable terms for the fair and equitable division of marital assets in the future should the marriage end in divorce in Denver.
When spouses set these terms during the most loving and caring point in the relationship, those generous protections stand even during the worst time in a relationship should this adverse event occur.
A prenuptial agreement only addresses the division and disbursement of marital assets, the retention of separate assets, and spousal support (alimony). It does not address child custody or child support since these decisions are made in the best interests of the child and according to the state’s child support formula at the time of the divorce should a divorce occur.
If one or both spouses own businesses, a carefully crafted prenuptial agreement protects each spouse’s interests in their business should they divorce. In extension, it also safeguards the business structure from disruption and protects employees. It also safeguards a spouse against the other spouse’s debts, including both personal and business liability.
A prenuptial agreement also serves as an important aspect of a married couple’s estate plan. It can waive one spouse’s right to inherit the other’s family property or protect assets from the state’s dispersal which may not align with the wishes of one or both spouses. While it doesn’t replace a will or complete estate plan, it is an important tool to protect assets during the marriage so the structure is in place for inheritance and bequests later.
If you and your partner have determined that a prenuptial agreement will benefit your marriage, it’s essential for each party to hire a skilled attorney to ensure that the prenup is well-crafted, valid, and legally enforceable. Call Ciancio Ciancio Brown, P.C. for experienced legal counsel.
