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For couples engaged to be married, a prenuptial agreement can help ensure that they, not the court, decide which property belongs to which person. With a minimal investment of time before your marriage, a prenuptial agreement can provide peace of mind and a sense of financial security.
A prenuptial agreement is a contract entered into BEFORE marriage. A prenuptial agreement establishes what will happen to you and your spouse's income and assets in case of death, divorce or separation.
Most importantly, prenuptial agreements preserve the nature of each spouse's property in the event the marriage ends in divorce. In other words, separate property will remain separate and will not be reclassified as community property or be subject to equitable distribution should the marriage end in divorce.
The benefits of a prenuptial agreement cannot be overstated. Marriage is a legal communion of property. If the marriage ends in divorce, deciding how to distribute property is often the biggest source of conflict for couples.
Prenuptial agreements minimize such difficulties by:
The circumstances in which someone might consider a prenuptial agreement include: You have children from a previous marriage You own a business or are involved in a family company You each have significant assets One of you has considerably more assets than the other You are concerned about your future spouse's significant debt.
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