Jennifer Abrams Discusses the Pros and Cons of Prenuptial Agreements

Why Sign a Prenuptial Agreement?

There are many reasons for entering into a prenuptial agreement. In most cases, it is because one or both parties have significant assets to protect in the event of a divorce. The agreement puts into place specific provisions to ensure that their financial interests will be protected.

Pros and Cons of Prenuptial Agreements

As with any legal agreement, there are two sides in deciding whether it is the proper action to take. Anyone contemplating a prenuptial agreement should be aware of the benefits as well as the pitfalls. Let’s look at some advantages and disadvantages of prenup:

The Advantages

Prenuptial Agreements allow each spouse to know where they stand financially. It also gives each spouse the independence to manage their own separate property assets without the interference of the other. Prenuptial agreements can also protect one spouse from being held responsible for the other spouse’s current or future debts. If a couple divorces and one spouse has brought debts into the marriage and/or incurred significantly more debt than the other during the marriage, a prenuptial agreement can specify that those debts are not shared.

The Disadvantages

Not all prenuptial agreements are equal in the eyes of the court. Some people believe that the best way to protect their assets is to do so in the cheapest way possible. A good divorce attorney can have a poorly drafted and/or executed prenuptial agreement ruled invalid in court. Invalid prenups are worthless — the protection believed to have been in place is not there. Once a prenup is ruled invalid, the alimony and property division laws in your state will be applicable to your divorce, as if you never had a prenup in the first place. The best way to ensure that a court rules that your prenuptial agreement is valid is to have it done right. You should seek the support of a knowledgeable attorney who has the depth of experience commensurate with what you have at stake. Additionally, if the agreement requires modifications, you will need to consult with your attorney again for the revisions.

Final Thoughts

While there are many advantages to having a prenuptial agreement, it is important to remember that it cannot protect you from every potential future financial or marital problem. When done correctly, premarital agreements are effective and solve more problems than would exist without them.

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Jennifer Abrams

Jennifer Abrams

Attorney Jennifer V. Abrams is a 20 year veteran in the practice of divorce law. Located in Las Vegas, Nevada.