When you are in love, you may think you will never need a prenuptial agreement, or prenup. That is until something difficult happens down the road and you are heading towards divorce. While divorce is not a guarantee, it is certainly a possibility that you should prepare for.
Without a prenup in place, your divorce can easily turn into a bloodbath from fights over property, investments and savings. But what exactly should you include in this marital contract? Read below for some provisions you may want to include in your prenup.
1. Determine marital and separate property
According to Business Insider, a prenuptial agreement should outline what constitutes separate and marital property. If you get a divorce, the court will have a large say in how to distribute your assets. In order to bypass the court dictating how to split your assets, you can spell it out in your prenup.
2. How to handle debt
If you or your future spouse accumulate debt during the marriage, it will often count as marital property, which means both of you will be responsible for it. Do you want a creditor to go after you for marital property even if your future spouse is the reason for the debt? If not, you can reduce your debt liability through a prenup.
3. Alimony issues
Alimony, also known as spousal support, can be a difficult issue to deal with in the event of a divorce. You may want to include a provision in your prenup putting a limitation on the amount, duration or terms of spousal support payments if you get a divorce. Another option is making an agreement about alimony that is different to what state law says.
Discussing a prenup may sound like an awkward and difficult time, but discussing financial and marital issues can actually help your marriage. If you end up pursuing a prenup, keep these three issues in mind.