When a couple in Chicago, or anywhere else, divorces, there are financial consequences for both spouses. One way someone with wealth may try to prevent financial losses in a divorce is through the signing of a prenuptial agreement.
A prenuptial agreement is a legal contract
Prenuptial agreements, sometimes also referred to as premarital agreements, are legal contracts between two soon to be spouses regarding how their property is to be managed during the marriage and conceivably after its failure. In most cases, this agreement cannot be verbal. Instead, it must exist as a drafted physical document that is signed and dated. The premarital agreement does not have to concern protecting the assets of one spouse form divorce proceedings. Still, that is often the motive behind such contracts.
The benefits of prenuptial agreements
There are good reasons why certain spouses may want to have a prenuptial agreement signed. Prenuptial agreements have specific benefits such as:
- Allowing you to retain your wealth after a divorce
- Preventing costly court battles over assets
- Preventing fraudulent marriages based on greed alone
- Protecting the inheritance of heirs
- Protecting a business from being split up
- Protecting pensions or retirement accounts
- Protecting you from your spouse’s debt
- Protecting your personal property and heirlooms
The downsides of a prenuptial agreement
Alternatively, there may be some downsides you should consider before signing a prenuptial agreement. For one, it may make it seem like you do not believe the marriage will last. It could create a feeling of distrust between you and your spouse that does not need to exist. If you are that worried, the better alternative may not be getting married at all until you better trust your partner.
Overall, prenuptial agreements can prevent much of the legal rancor that happens during divorce proceedings in regards to splitting up assets. If you do have significant assets that you wish to hold onto after a divorce, drafting a prenuptial agreement before your marriage could be the right course of action.