In reality, prenuptial agreements are more than just an agreement about money. They can also be used to address other important issues, such as providing for children from a previous relationship. There are some things that may be even more important to you than the division of assets or spousal support — a traditional use of prenups — including these four issues:
1. Asset protection.
A prenuptial agreement can help you protect assets by specifying how both marital and non-marital assets will be divided upon a divorce. Nebraska courts expect prenups to be fair and equitable, so don’t think you can use one to leave your ex destitute. You also cannot allocate child support or determine child custody with a prenup. However, prenups can be used quite effectively to protect the assets you bring to the marriage (non-marital assets) and protect you from problems that may arise when negotiating a divorce settlement.
2. Debt protection.
If you are marrying someone who has a lot more debt than you do, you can use a prenup to limit your liability and prevent creditors from going after marital property in the event of a divorce. While you should have a clear picture of your future spouse’s financial status before you get married, it is not unusual for debt to go unnoticed until after the wedding. A prenup will help ensure you won’t inherit your ex’s debt.
3. Business protection.
If you are a business owner, you will want to protect your business in case of divorce — not only financially, but also from any control your ex may wish to exercise. If there is no prenup that addresses business assets, you could find yourself in a legal battle for your business. You may be forced to buy out your ex’s share if they are awarded a portion of the business, or endure an ex’s interference in the daily operations of your business.
4. Financial security.
The purpose of a prenup is to ensure the financial security of both parties, especially in cases where one spouse has significantly greater wealth than the other. The wealthy spouse will want to protect their assets and limit the amount and duration of spousal support while the less-wealthy spouse will want assurance of a secure financial future. A reasonable prenuptial agreement that provides protection for both spouses should be the end goal.
For over 40 years, your legal team at Koenig|Dunne has counseled clients in thousands of initial consultations, and we are here to ensure that your initial consultation provides meaningful answers to the questions that matter the most to you.