What is a Premarital Agreement and is it Right For You?
A Premarital Agreement is a written contract entered into before marriage. Premarital Agreements are not just for the wealthy. Today, more people are marrying later in life after careers have been established and assets have been acquired prior to marriage.
Reasons to Have a Premarital Agreement
- A Premarital Agreement is a safeguard from the legal ramifications in the event of divorce and death.
- You want to clarify your financial obligations in a divorce
- Your partner has significant debt
- You own a business or part of one
- You own more assets than your partner
- You earn more than your partner
- One of you will be supporting the other’s education
- You are remarrying and want to ensure your children will inherit your separate property
Premarital Agreements do not have to be permanent. You can add sunset clauses in them, which means after a predetermined amount of time, the Premarital Agreement will expire. This removes the stressful feeling of being bound by a Premarital Agreement after your marriage has proven it will last.