When two people plan to marry, our Knoxville, TN prenuptial agreement lawyer can share that one of the most challenging conversations couples stand to have is that of the prenuptial agreement. The last thing most soon-to-be-married couples want to do is develop a plan for a time when they are no longer married. However, a prenuptial agreement may be a savvy decision for some couples because it sets out how assets will be divided should the couple divorce. It’s a common misconception that these agreements are only needed to protect a wealthy person’s assets from another person. As our team from Carpenter & Lewis PLLC can explain, there are several reasons to consider a prenup, including:
Although prenuptial agreements are available to anyone with assets who wants a plan, those with significant wealth should consider drafting a prenup. In some cases, one or both parties may have property, investments, stocks, and more assets. Clearly outlining how these assets will be divided can help clarify what will happen in the event of someone’s passing or divorce. Having a clear plan ensures that both parties agree on the division of wealth long before assets are separated in the event of divorce.
A prenuptial agreement can help to protect businesses from spouses who are non-owners of the company. Ultimately, an agreement can prevent the spouse with no stake in the business from accessing ownership rights to the business, property, and any income the business generates. Our Knoxville prenuptial agreement lawyer will share that without a prenup, business owners may not be able to protect the business as assets may have to be divided or ownership may need to be shared. This can have a far-reaching impact on other business partners and business employees.
It’s not uncommon for a couple to enter into a second marriage with their own children. A prenup can help to protect any assets the child stood to inherit before the second marriage. These agreements can pay special attention to which possessions and assets the children of each party are entitled to.
Another reason to consider a prenup is the ability to separate assets and debts. In addition to a prenup allowing for a clear division of assets, it can keep community property separate, thus protecting one another from debts. The other parties’ assets are also protected from creditors by waiving community property.
Clear prenuptial agreements can significantly simplify the divorce process and the agreements that must be made. While there will still be several issues to resolve before a divorce can be finalized, a prenup can clearly outline how assets will be divided should divorce ensue. Ultimately having these agreements in place can save time, money, and heartache during the many challenges of divorce.
While there are several reasons to consider a prenuptial agreement, it’s important to note that they are only for some. While these agreements can clearly outline expectations surrounding the management of assets down the road, it’s always important to first speak with a professional. To learn more about how our Knoxville prenuptial agreement lawyer can help outline the next steps, contact Carpenter & Lewis PLLC as soon as possible.
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