If you are getting married for the first time or remarried, signing a prenuptial agreement might be the furthest thing from your mind. However, a prenup should be considered because it can benefit you and your family. Learn more below about why a prenuptial agreement could be wise, then speak to our Chicago prenuptial agreement lawyer Michael C. Craven for assistance.
What Is A Prenuptial Agreement?
A prenup is a contract made with your future spouse before marriage. The agreement defines each party’s rights concerning divorce or a party’s death during the marriage. Although the agreement can alter outcomes as provided for under the law, not all rights can be changed in a prenuptial agreement. Agreements often address what property in a divorce will be divided and how it will be divided, and whether alimony will be awarded and if so, the terms related thereto. Prenuptial agreement terms concerning a spouse’s death can be varied. For those entering a second marriage, agreements can help assure children from a prior marriage are protected and that you are able to satisfy prior obligations to an ex-spouse.
While many feel that a prenuptial agreement might send a message that the couple lacks confidence in the marriage, there are benefits to signing one, especially in a second marriage. In addition to providing for predetermined outcomes or processes, prenuptial agreements help mitigate conflict, the length of a dispute, and attorney fees.
Assets Acquired In Another Marriage
Many people who are remarrying already suffered financially in their divorces. As a result, they want to plan for what they hope will not occur, another divorce. In most of these cases, one or both people entering into a new marriage want to protect the assets they own so that they are not divided in a subsequent divorce.
For example, you could have a house from your first marriage that is your property. But you and your new spouse plan to live in this home. You may have plans for what will happen to your home if there is a divorce. You could also have plans for any new property you acquire during your new marriage. In a prenuptial agreement, you can decide now to whom the house will be awarded, who may have a right to live in the house, how the expenses for the home will be paid, and more.
Spousal Support
You could have alimony or spousal support obligations from your previous marriage. Entering a second marriage could result in an additional alimony payment, making your financial future precarious. A prenuptial agreement can clarify the terms for additional alimony payments including the possibility of barring the new spouse from receiving alimony.
For those receiving alimony, once you remarry your support will likely terminate. The termination is irrevocable, even if the subsequent marriage doesn’t work out. If you are giving up valuable alimony rights to marry your new spouse, you may need to think about whether a prenuptial agreement can help you eliminate or minimize the risk.
Having alimony terms worked out at the outset of the marriage may reduce tension and stress over this matter in your new marriage.
Furthermore, you may want a prenuptial agreement to separate your and your spouse’s debt. Or, you might have a plan for handling debt that occurs in the marriage. Some remarrying couples discover that managing debt is less stressful by having a prenuptial agreement before the wedding.
Protect Your Retirement
Getting married when you are older is often different from doing so when you first graduated from college. If you get married in your 40s, 50s, or beyond, protecting your retirement income is essential if there is a divorce.
You will probably be counting on a specific retirement income from pensions and investments, and safeguarding that money is critical for your future. While income earned and saved before the marriage may be separate property, the contributions, and appreciation thereon are marital property to be divided in a divorce. Since the separate and marital portions are often mixed in one 401k or other retirement plan, a prenuptial agreement can help clarify the process of splitting a retirement account. An agreement can also provide that the entirety of a retirement account remains your separate property, even the portion contributed while married.
Speak To Our Chicago Prenuptial Lawyer Today
Are you getting remarried? You may consider a prenuptial agreement to protect your financial security. Our Chicago prenuptial lawyer Michael C. Craven can assist you with drafting a prenuptial agreement. Mr. Craven has extensive experience negotiating and writing prenups, so please contact our Chicago family law firm today for legal assistance.
