Prenuptial agreement used to look like an action that the rich people take when they get married. However, the trends now have shifted. A prenuptial agreement has seemed to be a reasonable thing to overcome the worst scenario that can happen in the future, like a divorce or death of one of the spouse.
Although some states have regulated how the property must be divided when the separation time comes, a prenuptial agreement can still be valid as long as it does not violate the law and is intended to protect both parties.
Now, if you are going to make a prenuptial agreement, contacting a lawyer and having a consultation is, of course, the best thing to do. But if you want to know what it mainly is, this article provides some basic information that you need to know about a prenup.
Separate Property is the property that belongs to only you or your spouse. Usually, this includes a house, cars, gold bars or land that you have acquired before the marriage. It also covers the money that you save in your own bank account.
Before the marriage, a prenuptial agreement will specifically identify each property that belongs to you or your spouse. After the marriage, as long as you keep the ownership of the property under your name, it is still yours. You can also state in your agreement that in case you receive an inheritance from your family during the marriage, it will be your property.
Joint property, or usually called marital property, is the wealth that you and your spouse own together. It is ownership of either a residential or commercial property and capital, that you and your spouse earn during the marriage.
To address the joint property, you can put it under both your name and your spouse’s name. For example, you can save your marital money on a joint bank account. From this account, you or your spouse has rights to withdraw and use the money.
With a prenuptial agreement, you can predetermine the kinds of support that you, your spouse, or the kids would receive if there is a breakup. It is important to deal with because, the unfortunate that may happen is when the custodial parent ends up jobless and is no longer eligible to support the child.
And just in case there is any future debt, your prenup can arrange if the subject that receives divorce support is still qualified for it. Because, in reality, taking the debt responsibility of the ex-spouse happens a lot to a divorcee.