Almost 50 percent of all marriages in US have led to divorce. Although love is the foundation of marriage, we cannot make sure that love can last until the end. This is evident among the numbers of divorce rate in the country. This increase in divorce rate has led prenuptial and postnuptial agreements to become popular among married couples for the protection of their assets. There are two types of agreement suitable for this situation, the prenuptial agreement and the postnuptial agreement. How do these types differ and which is better? Read more to learn more.
Prenuptial Agreement: As the name suggest, prenuptial is an agreement made prior to the wedding. It is an agreement between the engaged couple regarding the ownership of their properties or how will they divided them and financial rights of each partner in case divorce will take place. This does not mean, though, that the couple anticipates a divorce. In this agreement, all properties and assets acquired after marriage are considered as conjugal while properties before marriage will remain as personal assets.
Postnuptial Agreement: The written agreement between married couples after their wedding is called postnuptial agreement. It is a lot similar to prenup except that the agreement is made after the wedding and the properties and assets that should be divided in the event of divorce include all those acquired even before marriage.
Since the agreement is made after the wedding vows, all properties and assets of both partners, including those acquired before their marriage, are considered marital or conjugal. These and future earnings will be divided to partners depending on their agreement in the event of divorce.
The Benefits of Prenuptial and Postnuptial Agreements:
- Financial matters that could occur in the future are being addressed.
- Family ties and inheritance will be preserved.
- This could protect the financial well-being of your children from previous marriage.
- All personal and business assets accumulated before marriage will be protected.
- Financial expectations will be prepared before the wedding.
- In case death occurs, the agreement will spell out which assets will be given by a spouse to the children or other family member.
- If divorce takes place, the agreement will resolve the battles over assets and finances.
Whether the agreement is made before or after the wedding, they have only one goal – that is fair settlement over properties in the event of divorce. Having a credible Austin postnuptial agreement lawyer will keep you feel secured and make sure that all conditions will be met.