• 05
  • April
    2011

As discussed in previous posts, one of the more effective asset protection tools in a marriage is a prenuptial agreement. While the mere mention of a prenuptial agreement may conjure up feelings of unease, distrust or even anger, the simple reality is that it can actually help preserve an amicable marriage and reduce hostility in the event of a divorce.

In very basic terms, a prenuptial agreement is a contract entered into by a couple prior to their marriage that clearly delineates their respective expectations and rights in the event of a divorce. Important legal matters, such as spousal support and property division, are essentially settled beforehand and the need for any sort of prolonged legal battle is avoided.

Today's post, the first in a series, will briefly examine why a prenuptial agreement can prove to be such a valuable tool for married couples.

Executing a prenuptial agreement can provide a couple with valuable insight on one another's financial views

It is not uncommon for couples to put off discussions of money or other financial matters until they become absolutely necessary or to avoid the topic altogether out of fear that it will cause unnecessary marital strife.

However, this can prove to be a real mistake, as disputes over money/financial matters are one of the primary reasons that couples ultimately divorce.

Interestingly, a couple that sits down together to draft a prenuptial agreement will inevitably learn more about one another's views regarding money, perhaps setting the stage for a lengthy yet productive discussion that will help resolve any differences that could cause major problems in the future.

Executing a prenuptial agreement can provide a couple with a definitive answer regarding property

When a couple is first married, it is relatively easy to determine what property is considered separate property and which property is considered marital property. However, as the years pass, this distinction can become less clear as property/assets are comingled and new property is acquired.

This scenario can even set the stage for a costly, prolonged and exhausting divorce as all property must be carefully examined and divided between the couple. In fact, bitter legal disputes regarding property division are not entirely out of the realm of possibility.

Fortunately, a prenuptial agreement can help prevent any of this from ever occurring.

In terms of property, a prenuptial agreement plainly defines what constitutes separate property/marital property and enables the couple to decide how this marital property is to be divided.

This can remove tension from a marriage, as both spouses know ahead of time how property will be divided. It can also save time, money and unneeded stress in the event of a divorce.

To be continued ...

Stay tuned for more from our Denver divorce blog ...

If you would like to learn more about divorce or asset protection, you should strongly consider speaking with an experienced legal professional.

This post is provided for informational purposes only and is not to be construed as legal or financial advice.

Related Resources:

10 reasons why it is important to have a prenuptial or cohabitation agreement (The Huffington Post)