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Treat Marriage like an Investment, Get a Prenuptial Agreement

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A wedding is an exciting and stressful event — particularly for the couple getting married. The days leading up to this big event are likely filled with discussions about venues, photographers and caterers. Although these discussions are important to ensure the day goes smoothly, there are other discussions that are even more important. These discussions can help to better ensure not just a smooth wedding, but a smooth marriage.

Happy couple in street near city centerOne such discussion involves conversations about finances and professional goals. In many cases, these conversations should include a discussion about putting together a prenuptial agreement.

Why is a prenup important?

Prenuptial agreements can help to better ensure that there are no surprises before entering the marriage. Taking the time to craft this type of agreement provides an opportunity for the couple to discuss all the assets and liabilities an individual would bring into the marriage.

Two specific topics to discuss when considering a prenup include:

  • Business interests. This asset is arguably one of the more important interests to account for within a prenuptial agreement. If the marriage were to end in a divorce, a dispute over business interests could have a negative impact on the business, potentially affecting the business operations. This can be avoided for by accounting for how business interests would be handled in the event of a divorce within a prenuptial agreement.
  • Real estate. Interest in real estate that is gained prior to marriage can be handled in a number of ways. One option is to include the asset within the prenuptial agreement. Another is to refrain from including the partner’s name on the deed. The later can result in issues if the marriage ends with a contentious divorce. This will often depend on how the property was managed during the marriage. In some cases, the asset could be argued to have evolved into marital property during the course of the marriage.

It is important to structure these agreements carefully. This is true whether proposing an agreement or given one to look over and adjust prior to getting married. Seek legal counsel to help ensure the document is crafted to meet the unique needs of your marriage.

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