A prenuptial agreement is a contract initiated by both spouse before a marriage that outlines how assets and debts will be distributed if the marriage ends in divorce. The contract specifies which pieces of property are considered marital property, and contains agreements made by both spouse about various marital subjects made in case the marriage does end.
Here are the most common reasons people implement prenuptial agreements:
- One or both spouses own significant or valuable assets coming into the marriage
- One or both spouses have a large stake in a family business or other family assets
- One or both spouses owns their own business and wants to protect their share of the business
- Either spouse has children from a previous marriage
- One or both spouses has already been through one or more divorces
- One or both spouses has significant debt
Each of these reasons represents one spouse wanting to protect their own interests. When business interests are involved, for example, spouses who use a prenuptial agreement ensure they will still have their stake in the business (and thus their livelihood, in some cases) moving forward should the marriage end in divorce.
In a case in which one spouse has significant debt entering the marriage, a prenuptial agreement can protect the other spouse from having to bear the responsibility of any of that debt should a marriage end in divorce.
For more information about the reasons to implement a prenuptial agreement and how to develop such an agreement, contact a trusted Minneapolis divorce attorney at Appelhof, Pfeifer & Hart, P.A.
