When people become engaged, one of the many topics that are discussed is how assets should be combined. Some couples may entirely combine savings accounts, share a car and even merge furniture and belongings. Other couples prefer to have individual bank accounts, personal vehicles and a clear understanding of who owns what furniture.
No matter the case, couples may still consider creating a backup plan to protect their assets if there was ever a divorce. You have two options for asset protection: prenuptial agreement (prenup) and postnuptial agreement (postnup).
You may be asking yourself how a prenup or postnup can help you – here’s what you should know:
Saving yourself from divorce attorney fees
Many couples want to know their assets are protected before they’re married in case their relationship turns sour. That is why many couples will negotiate for a prenup. A prenup is a legal document made before marriage – and only ever made before – and details what assets belong to who after divorce.
Because talking about financial matters can be a sensitive topic that couples often put off, a prenup can ensure everyone is on the same page about their assets and income. A prenup may even deter someone who’s seeking marriage for selfish reasons. This could save you the heartache of going through an unhappy marriage and the legal fees during the divorce process.
Discussing financial matters after marriage
On the other hand, not everyone knows about prenups before marriage. That’s why some people will get a postnup. A postnup works much like a prenup, but is made after marriage.
A postnup has one big advantage that prenups can’t provide. A postnup can be made to replace a previously established prenup. This may be done to protect newly acquired assets during marriage: inheritance, businesses or debt protection.
If you’re entering into a marriage, or are already married, then you may need to consider creating a prenup or postnup. Prenups and postnups can be tricky to negotiate and may need the help of an experienced attorney.