Overview
A prenuptial agreement or "prenup" is a legal contract that outlines the division of assets and debts in case of divorce, separation, or death.
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What is a Prenuptial Agreement?
A prenuptial agreement, often abbreviated as a "prenup," is a legal contract entered into by a couple before they get married or enter into a civil partnership.
This agreement stipulates how their assets and debts will be divided between them in the event of a divorce, separation, or death.
It can also contain provisions for spousal support, the division of property, and the financial responsibility of each party during the marriage.
What are the benefits of creating a Prenuptial Agreement?
- Financial Protection: A prenup can protect each spouse from being responsible for the other's debts. It can also protect the financial stability of spouses who bring significant assets into the marriage.
- Preservation of Family Wealth: Prenups can ensure that family wealth or a family business stays within the family or is passed to children from previous relationships.
- Clarity and Avoidance of Disputes: By outlining how assets and debts will be divided in advance, a prenup can minimise disputes and make a potential divorce process less contentious and stressful.
- Protection of Business Interests: For spouses who own a business, a prenup can prevent the business from being divided in a divorce, which could disrupt its operations or value.
- Safeguard for Future Earnings: A prenup can protect future earnings or assets that a spouse expects to acquire, such as an inheritance or profits from a business venture.
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