When many people hear “prenuptial agreement,” they think of celebrities with significant assets and divorce. It is true that many celebrities draw up prenuptial agreements. And these agreements also play a significant role in a divorce if a couple established one before marriage.
However, creating a prenuptial agreement does not always mean a marriage will end in divorce. There are various benefits that a prenuptial agreement can bring to a relationship.
1. Prenuptial agreements can protect assets
A prenuptial agreement is like a financial contract between a couple. It may not sound so romantic, but it can be incredibly beneficial.
When marriage connects two people’s lives, it also connects their financial assets. And a prenuptial agreement allows couples to set up some safeguards for their individual property.
A couple can decide what they should define as marital property as well as what they wish to keep separate, such as:
- Inheritances and annuities
- Family heirlooms and valuables
- Businesses and other investments
In the event of a divorce, a prenuptial agreement does protect this property from Alabama’s equitable distribution standards. However, it also protects these assets during the marriage.
The agreement can prevent one spouse from using the other spouse’s assets. It also keeps their property safe if the other spouse falls into debt.
2. Couples can outline their responsibilities
A couple can also identify each person’s financial responsibilities in the relationship. They can agree on a wide range of issues, including:
- How much each person will contribute to shared bank accounts or savings
- How they will manage spending habits and paying bills
- How the couple will support each other financially
Outlining these responsibilities might actually help couples avoid disputes—and even divorce. Various studies indicate that arguments over money are one of the top factors that can lead to divorce.
Creating a prenuptial agreement can help couples create a money management strategy. And that can help couples avoid the epidemic of financial infidelity.
3. Peace of mind
Getting married is one of the biggest decisions in someone’s life. It brings change, uncertainty and new worries.
A prenuptial agreement can help ease some of those worries, and help couples move into their future with confidence.