Getting married can be the one of the most exciting events of your entire life. Months—sometimes years—of planning go into the ceremony to perfect every last detail. Unfortunately, many people don’t consider the legal aspect of marriage. Legally, a marriage is a contract between two people that establishes legal rights and obligations to each other. To protect your assets and property, it’s important to consider a pre-nuptial agreement before entering marriage.
The average age of first time marriage has significantly increased over the decades. Nowadays, many people have acquired valuable assets before they get married. These assets are important to protect should any complications with your marriage arise. The idea may sound very Hollywood, but even the average person can utilize and benefit from a pre-nuptial agreement.
Factors that can be considered for a prenuptial agreement include:
- Protecting your individual property
- Define what property is considered marital property
- Establishing your estate plan
- Establishing procedures for future matters, such as divorce or death
Any couple that brings personal or business assets to a marriage can benefit from a pre-nuptial agreement. This legal contract preserves the expectations of each party and will always be enforced by the court. After so many years of marriage, it may be hard to trace what is separate from pre-marital property. Pre-nups can be especially beneficial for older couples that already have children and significant assets.
Depending on your state, there are different rules for division of property. Some states like California uphold community property laws, dividing property equally regardless of whose name is on the deed. Other states like Michigan follow equitable distribution laws, dividing assets how a judge sees fit.
Entering a pre-nup before you take the big leap can help iron out any financial details left untouched and protect valuable assets that are important to you. Drawing these kinds of guidelines can provide extra assurance before your marriage and encourage important communication between you and your partner. Contact ADAM of Southfield today for more information about a legal plan for your marriage.