Prenuptial agreements, commonly referred to as prenups, have long since been stereotyped as documents limited to extremely wealthy couples. In reality, however, prenups can be valuable to couples from all walks of life.
When a couple decides to marry, there are plenty of financial and legal issues that have yet to be decided, and a prenuptial agreement can serve as a way to designate how finances and such will be handled in the marriage.
A prenuptial agreement can also help establish how assets would be divided if the couple should ever decide to get a divorce. If you are considering creating a prenuptial agreement but aren’t sure whether or how to proceed, the Law Office of Pamela C. Bratcher is here to help.
In this blog, we will discuss the benefits of a prenup in Kentucky to help you discover the ways in which it could benefit you as an individual and both you and your spouse as a married unit.
First Things First: What Is a Prenup?
A prenuptial agreement is a legally binding contract established between two individuals before their marriage has taken place in order to designate the responsibilities and rights of each party, especially as it pertains to individual and marital assets.
This is where the idea that prenuptial agreements are for the rich comes into play—the more assets you have the more important it may be to designate your right to those assets should you and your partner ever end your marriage.
Again, however, it’s important to remember that many key prenup benefits exist, regardless of your financial situation.
How Does a Prenuptial Agreement Work?
Generally speaking, prenuptial agreements work just like any other legal contract. However, prenups were not considered valid under Kentucky law until the pivotal 1990 Kentucky Supreme Court case of Edwardson v. Edwardson.
In this case, the court held that such contracts between two spouses were valid and enforceable so long as the following are true:
- Both spouses have made a full financial disclosure,
- The prenup does not include any unconscionable terms,
- The prenup was not procured by fraud or duress, and
- There are no terms in the prenup address child custody and support.
If you have questions about how to draft a legally binding prenup and what terms to include in yours, consider speaking with an experienced family law attorney to learn more.
What Is the Purpose of a Prenup?
The primary purpose of a prenup is to clearly set forth and establish certain rights and responsibilities of each spouse that will be effective in the event the marriage ever ends, whether as a result of a divorce or the death of either spouse.
When properly drafted, a prenuptial agreement will typically address topics such as:
- How assets and debts acquired during the marriage will be divided;
- What and to what extent property acquired by a particular spouse prior to the marriage will be divided;
- The ownership of family heirlooms;
- Protection of business interests, inheritances, of family wealth;
- How to provide for children from prior marriages or relationships;
- The financial obligations and responsibilities of each person while married; and
- The financial obligations and responsibilities of each person if the marriage ends, such as spousal support, and division of assets.
By outlining these details as they pertain to finances and business or property maintenance, couples may establish how they will share responsibilities in their marriage.
The specifics can also designate how those responsibilities and assets should be divided if the couple should ever choose to dissolve their marriage, or in the event that one spouse should die.
Prenuptial Agreement Benefits: Why Is a Prenuptial Agreement a Good Idea?
There are many reasons why having a prenup in place before getting married can be a good idea. One of the biggest advantages of having a prenuptial agreement is that you can have it drafted specifically to meet the needs of you and your soon-to-be spouse.
Below are some more examples of the benefits that a prenuptial agreement can provide for couples contemplating marriage in Kentucky:
- Asset protection and safeguarding of each spouse’s pre-marital financial interests;
- Preservation of business interests and inheritance rights;
- Clarification of financial rights and responsibilities of each spouse;
- Reduced potential for conflict, uncertainty, and disagreement in the event of a divorce; and
- Greater likelihood of streamlined and cost-effective divorce proceedings if and when they become necessary.
In the event of a divorce, having a detailed prenuptial agreement will also help you and your spouse separate more quickly and with less argument because most of your financial details will have already been decided on.
While nobody wants to plan for such an unfortunate ending, it can certainly be beneficial to protect your financial and business interests before you get stuck in an emotional legal battle.
Speak with a Family Law Attorney To Discuss Your Options Today
Failing to create a prenuptial agreement could lead to financial disagreements or misunderstandings in a marriage, and could make a divorce much more complicated than necessary.
Without a prenuptial agreement, a divorcing couple would need to discuss how their funds and assets will be divided while also dealing with the heightened emotions that usually accompany the divorce process.
If you are interested in creating a prenuptial agreement to protect your individual assets and financial freedoms in your marriage, our firm can help.
At the Law Office of Pamela C. Bratcher, we have been fighting for the rights of our clients since 1988. Our attorney understands that each person’s needs are different, which is why she will create an agreement that works best for you.
Rather than seeing a prenuptial agreement as a pessimistic or negative way to enter into a marriage, our legal team knows that such documents can serve to help couples find security in the financial agreements within their matrimonial state.
Contact the Law Office of Pamela C. Bratcher for a case evaluation in Bowling Green, KY.