While no one wants to think about a divorce before they even get married, marital agreements (or pre-marital agreements) must set certain conditions in the event that the marriage ends. For example, a person with an established family business may attempt to protect those assets from the other party in the event of a divorce. However, there are some restrictions on what can be included in a conjugal agreement. A marriage agreement is nothing more or less than a contract between two people. It defines the assets and liabilities that each party brings to the marriage and determines the property rights of each party for the duration of the marriage, and whether that marriage ends in divorce. Marital agreements may also come into play after the death of a spouse, to ensure that their property rights and interests are protected even after their loss. A marital agreement, or simply a prenup, has been the subject of much heated debate. People have crossed swords on this subject both in public, and even more (understandable) in private. Why get married, some say, when you are already setting up the set for failure by showing distrust of your partner? Others say that while they don`t doubt their love and success in the relationship, even a single song never hurts to prepare for the worst-case scenario. You are much richer than your partner – A marital agreement can protect your existing property from becoming a communal or marital property.
In addition to protecting your property, a marriage agreement guarantees an excellent estate planning tool. Given that many people today choose to (re) marry later in life, when they have already accumulated on their own a certain wealth that they prefer to keep separate, this is hardly surprising. “A marital agreement can protect these assets from mingling with assets and assets accumulated during the marriage, which would be divided after death as part of someone`s estate,” said journalist Liv Moyer for the Wall Street Journal. [tweet_dis_img] [/tweet_dis_img] There are many reasons for a marital agreement.