Prenuptial agreement is a contract a couple writes down before marriage, about how finances and property will be divided in case of divorce. It can also state the couples wishes as to how they want to handle the finances during marriage.
If a couple has entered a prenuptial agreement then the property, debt, and finances are split according to the terms of the agreement, but if you don’t have a prenuptial agreement, the state law will decide these issues for you.
At Teston & Burruss, our attorneys guide clients in matters involving prenuptial agreements as well as postnuptial agreements and separation agreements. Many couples choose not to create a prenuptial agreement, others, especially those who have been married before see a prenuptial agreement as a way to prevent unexpected legal difficulties in the future.
Why Create a Prenuptial Agreement?
A common misconception is that prenuptial agreements are only for the wealthy or people with considerable assets. Anyone who has assets, debts or children from a previous marriage should definitely consider a prenuptial agreement.
A prenuptial agreement can help protect your assets from landing into your spouse’s hands in case of a divorce. It can protect you from taking on your spouse’s debts or having to divide your inheritance with your spouse in case of a divorce. Georgia is an equitable property division state, meaning that property is not always divided equally.
Postnuptial agreements: Taking Precautions with Your Future
A postnuptial agreement is similar to a prenuptial one except that it is decided after a couple is married. This agreement is done to protect one’s interests and defend your future.
This agreement defines the terms of alimony and factors such as division of property. Incase inheritance is involved, it protects the rights of the children, ensuring that the inheritance is passed on to them as intended beneficiaries.
What Can You Do With a ‘Postnup’?
There can be several reasons you may want to enter a postnuptial agreement. Some of them are:
- You Inherit a substantial amount of money or property after marriage, you will want to ensure that it is passed onto your children and not your spouse.
- If your spouse cheats on you or misuses financial assets, a postnuptial contract may be entered specifying the offending spouse will not get alimony or certain assets if divorce takes place.
- You have taken a loan from a bank for a down payment towards a home that is owned jointly by you and your spouse. The post-nup can be used to say that the marital equity in the house doesn’t include the down payment.
Doesn’t it Look Bad to Create a Prenuptial or Postnuptial Agreement?
A prenuptial or postnuptial agreement gives couples peace of mind that their interests will be protected during and potentially after marriage. Even the most stable marriages can change over time, so entering a prenuptial or postnuptial agreement is the best way to go to avoid issues later.