If you are planning a wedding, you might be considering a prenuptial agreement. This is a written, legally binding document that states how property is divided and other financial terms if you and your spouse divorce.
Advantages of a prenuptial agreement
While no one getting married likes to think about the idea of divorce, a prenuptial agreement is a good idea for many reasons. It provides you with a sense of security knowing how your property will be divided and what your financial obligations will be if you divorce.
A prenuptial agreement may include terms on both separate and marital property. Generally, marital property is property acquired during the marriage, while separate property is property one spouse owned prior to marriage.
This makes a prenuptial agreement an attractive option if you have substantial separate assets or financial resources, particularly assets that have been in your family for many generations or if you own a business. Your prenuptial agreement can specify that these assets remain with you.
When you decide a prenuptial agreement is the right choice, there are some steps you can take to prepare.
Discussing a prenuptial agreement
Make sure each spouse has an equal say in the decisions. Although it can be challenging, a prenuptial agreement can be declared invalid by an Alaska court if it is found to be too unfair to one spouse.
Have an open and honest conversation with your soon-to-be spouse about the terms of your prenuptial agreement and your reasons for drafting one.
Gather all the information about your assets and liabilities before you discuss the prenuptial agreement. Make a list of everything and review it carefully.
A prenuptial agreement can also include terms regarding alimony or spousal support. This can be a huge relief if you are worried about being wiped out financially from alimony or spousal support payments in a divorce.
A sense of comfort and stability
Divorce is usually stressful, no matter how well you prepare. Part of that stress is often fear of the unknown. A prenuptial agreement can help alleviate some of this fear.