When you get married, you make a commitment of the heart, soul, and finances with your partner. After marriage you and your partner will have to budget all the things together from your marriage expenses to buying a home, you and your partner will have to deal with monetary issues together as a team. While it doesn’t come up in every marriage, a prenuptial is a common agreement between people who are engaged to be married.
A prenuptial agreement gives you and your partner a chance to plan ahead for the unlikely event of divorce, separation, or dissolution of marriage. A prenuptial agreement is an excellent tool to have in case your marriage doesn’t work out but there are also some downsides to it. In this blog post, we will outline the pros and cons of a prenuptial agreement.
Pros Of A Prenuptial Agreement
Here are some of the pros of a prenuptial agreement.
Finances Are Disclosed Upfront
The first thing you need to do in a prenup agreement is share all of your financials. Each and everything such as assets and debts of both parties are laid out on the table. This is the best opportunity to discuss all the hard talk related to money, which lays the foundation for deciding how the finances will be divided among you and your partner in case of separation, divorce, or other marital dissolution. In a prenuptial agreement, you and your partner will have to present all your financial documents, including mortgage titles, car loans, and bank information to your attorney. Since everything including your personal assets like income, anticipated inheritance, and investment is openly shared by both parties in a prenup agreement, there is less chance for surprises.
Protects Loved Ones And Property
If your marriage does work out, a prenup agreement will help you save your property and loved ones. For instance, if you have established a business before marriage and want to protect that asset in case of a divorce the prenuptial agreement will do that. In a prenuptial agreement, you can protect your assets and property and keep them to yourself after the divorce.
Can Set Expectations Early
With a prenup agreement, you can save yourself and your partner from all the confusion related to your finances at the time of divorce. As things are discussed beforehand there is no tension, anxiety, and confusion during the divorce process. Divorce is an emotional and stressful time for both parties and in such a time if you have to deal with the division of finances it can become even more difficult. In case of a divorce, you and your partner’s individual assets will remain intact. So, a prenuptial agreement will save you from all the extra tension as everything regarding finances will be decided beforehand.
Cons Of Prenuptial Agreement
Here are some of the cons of a prenup agreement.
They Can Feel Transactional
Prenuptial agreements for many are unromantic. Most people think that it kills the romance in marriage and can become the reason for divorce for some people. Since you have to go knee-deep into finances it can become a stressful and emotional ride. So it is always better to discuss the possibilities of a prenup agreement with your partner beforehand.
When you opt for a prenup agreement you and your spouse both have to seek legal counsel. You both will need lawyers who can guide you throughout the process and will provide you guidance about the terms and conditions of the contract. They will also tell you how it may affect you, your finances, and your family in the case of a divorce. So, you will have to pay for the legal fees of the lawyers which can vary depending on your financial status and your location. So, if you are going for a prenup agreement keep your legal fees in mind.
About Peak Family Law
Peak Family Law is an experienced family law firm based in Edmonton, Alberta. We at Peak Family Law assist families with the successful settlement of different family matters in Edmonton and its surrounding areas. We treat our clients with empathy and dignity. Contact us today for expert legal advice.