• 07
  • April
    2011

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 second in a series, will briefly examine why a prenuptial agreement can prove to be such a valuable tool for married couples.

Please see "How a prenuptial agreement can help your marriage - I" for background information.

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Executing a prenuptial agreement can create greater family harmony

While this notion may seem counterintuitive, executing a prenuptial agreement can actually serve to make couples happier. How? By outlining ahead of time who will get what assets and how much money (spousal support) in the event of a divorce, each spouse can feel relatively secure about their financial status and feel unencumbered by worries over what the future may hold.

Similarly, a prenuptial agreement can be especially valuable in creating family harmony in second or third marriages. Simply put, it will allay fears on the part of one spouse that the other is only "using them for their money" and make certain that assets will be eventually handed down to the their children (typically from the first marriage).

Executing a prenuptial agreement can save you money and grant you peace of mind

The most obvious advantage of a prenuptial agreement is that you and your former spouse can likely bypass a contentious and costly divorce trial that may drag on for months. In addition, you don't have to worry about a judge who is unfamiliar with the dynamics of your relationship from making potentially troublesome decisions.

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)