It seems like whenever a celebrity couple goes through a divorce most of their financial concerns are managed through the interpretation and application of their prenuptial agreement. As previously discussed on this Florida family law blog, prenuptial agreements, also known as prenups, are contracts that individuals make with their future spouses that outline how they will divide up their financial assets and property if they divorce. Not all individuals may choose to enter into prenups before they wed but people planning to marry may wish to ask themselves several important questions before they definitively decide against creating them.
First, a person considering a prenup may want to ask themselves what kind of property they own as an individual and what the value of that property is. Property rights can be affected by divorce if one’s individual property becomes marital property and a person may lose things that they once owned on their own due to their marriages.
Second, an individual should ask themselves about their business and financial interests to determine if they have any assets of significant value that may be lost in a divorce. Like real and personal property, investments, interests and business ownership assets can be divided and sold during divorces.
Third, people considering prenups should ask themselves if they have any other loved ones who they would want to benefit from their end of life estate in the event that they pass away while married. For example, if a person had children from a prior marriage they may want to use a prenup to protect certain wealth from becoming the property of their spouse in the event of their death.
While many of these questions can be answered on one’s own, understanding how those answers may impact their future wealth may be more difficult to surmise. Discussing the benefits and drawbacks of prenuptial agreements with family law attorneys can help individuals decide if they are right for them.