Kevin Qualls Family Law
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Prenuptial agreements and marriage can go hand-in-hand

Couples in Orange County planning a wedding have a lot on their plate. In between finding the perfect outfit, arranging for flowers and musicians and deciding where to go on their honeymoon, couples ready to walk down the aisle may neglect to have one important pre-marriage conversation: creating a prenuptial agreement.

In fact, some spouses may purposely put off making a prenup. After all, it is not a romantic conversation to have, and some couples may be unwilling to think that they may one day divorce. However, divorce is a fact of life for many couples in Orange County, so it is best to be prepared.

So what are some situations in which a prenup may be appropriate? One is if a spouse is a business owner. A business may be a spouse's most valuable asset, but without a prenup it could be one of the most difficult things to value and divide. One way a prenup can address the ownership of a business is to say that income the business generates is marital property, but any increase in the value of the business along with the business itself will be considered to be separate property.

Another reason that one might want to create a prenup is if one of them anticipates receiving a substantial inheritance. For example, the prenup could contain a provision stating that the inheritance belongs to the spouse to which it was granted, even if that spouse uses those funds for marital expenses.

A third reason for creating a prenup is if each spouse has different views about how to manage their finances. Some spouses may be more interested in saving money while others may be more likely to spend it. When a prenup is being created, each partner has to be completely transparent with both their assets and their debts. By doing so, a prenup can address what will be done with debts in the event of a divorce.

This post really only scratches the surface of what a prenup can cover. But what it comes down to is that a prenup can protect each party's financial interests. Creating one may not be romantic, but it can be practical to have during the marriage or even essential should divorce one day occur.

Source: Cheat Sheet, "Marriage: 5 Signs You Need a Prenuptial Agreement," Megan Elliott, March 28, 2016

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Kevin Qualls Family Law
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