Reasons for Getting a Prenuptial Agreement in NC
There are a number of reasons as to why you should create a prenuptial agreement prior to getting married. The most important reason is to protect yourself, your partner, and your individual assets entering into a marriage. A prenuptial agreement is created before entering into the marriage, and the agreement outlines what happens to your assets, debts, and property in the event of divorce.
The most common reasons for entering into a prenuptial agreement are:
One partner has significantly higher income than the other partner. In the event of divorce, the partner that has significantly higher income than the other partner may be required to pay significant alimony payments to the other spouse. The partner who has a higher income may want a prenuptial agreement to protect that income in the event of divorce to avoid paying significant alimony payments.
If either of the spouses have significant assets or significant stock holdings. Typically, assets prior to marriage are not considered marital assets in the event of divorce but it is easy to commingle these assets which would allow a judge to include the assets as marital property. In addition, it is important to protect stocks, investments, and any income from these stocks and investments from being divided if the assets become commingled.
On the other end of the spectrum, if either of the spouses have significant debt. Typically, debt is considered separate in the event of divorce but debt can be considered marital or problems can arise depending on the resources used to pay off the debt.
If either spouse is a business owner, it is important to have a prenuptial agreement to protect their business, financial future, as well as to protect their employees. In the event of a divorce, a spouse is entitled to at least half of the value of the business that they received during the marriage.
If either of the spouses have children from a previous relationship or has a pet, it is important to have a prenuptial agreement in place. Although rare, having a prenuptial agreement in place that gives the pet to the rightful owner in the event of divorce is important to prevent a disagreement as to where the pet goes after the divorce. Additionally, if there are children from a previous relationship a prenuptial agreement can preserve property or income that is set aside for the children. Without a prenuptial agreement the property and income will be included in the marital estate. The prenuptial agreement ensures that the assets that are supposed to go to the children do not have to go through a divorce proceeding.
While entering into a prenuptial agreement can be an uncomfortable or awkward conversation with your partner it is important to address several months prior to the wedding to ensure you have enough time to discuss and prepare the prenuptial agreement. It is important to note that a prenuptial agreement does not mean that you are preparing for a divorce or judging your partner's financial choices, but rather allows you and your partner to be financially protected in the event of a divorce.
In North Carolina, it is possible to write your own prenuptial agreement as long as both parties have reviewed and signed the agreement and waived their right to have legal counsel present. While it is possible to create your own prenuptial agreement, an experienced attorney can help with the process so you and your partner can make informed decisions about your assets, debts, and more.
Before you enter into your marriage you can trust Betham Law, PLLC for legal advice relating to the creation of your prenuptial agreement. For help with your prenuptial agreement, please contact Betham Law, PLLC to schedule a consultation today.
