In the past, the prenuptial agreement has been connected to society’s wealthiest and famous as a tool to protect themselves during a high asset divorce. However, this document is not made for them alone. Whether you make a seven-figure salary or farm a small plot of land, a prenuptial agreement should be included as part of a marriage plan and premarriage counseling.
Besides dividing property, a prenuptial agreement offers many other advantages to make a divorce easier for both parties. One of the protections is for future earnings. While one partner may have few assets at the beginning of a marriage, a huge salary increase or revenue from a newly opened business can alter this situation in a matter of years. A detailed agreement can protect these earnings during a divorce proceeding.
If a marrying spouse already has children, a prenuptial agreement can allow the other partner to financially provide for them in the event of divorce. Instead of having assets such as IRAs and life insurance policies left to the spouse at the time of death, the assets can be set to be passed along to the former spouse’s children. In addition, living trusts can be set up within these agreements.
Whether preparing a prenuptial or invoking one, Colorado couples may wish to utilize legal firms specializing in family law. In addition to having a third-party available to discuss what should be placed in the prenup, these law firms will be available for the dissolution of the relationship and may resolve issues that arise within the agreement.
Source: The Huffington Post, “Prenups: Not Just for the Wealthy,” Jason Marks, April 25, 2013