At the Provo law firm of Howard, Lewis & Petersen, we have helped clients protect their and their loved one’s assets during divorce and even with prenuptial agreements. Many people have heard about prenuptial agreements, but do not understand many of these contracts. So today’s article will illuminate some of those areas of confusion.
A prenup is a written contract between two people before they are married. It typically lists all of the property each owns and how it will be divided in the event of a divorce.
No matter how much income or property the couples have, many are turning to a prenup for their own purposes, including:
To pass separate property on to children from previous marriages. A prenup can be used to state instructions for property to go to children from previous marriages in case the spouse dies. Without a prenup, the surviving spouse may take a large portion of the deceased spouse’s property, leaving the children with much less.
Delineate financial rights. Some couples use a prenup to clarify the financial rights and responsibilities during marriage.
Avoiding disputes in case of divorce. Prenups can be used to specify in advance, where the property, income, and maybe alimony payments will go if the couple ever gets a divorce.
Get protection from debts. Prenups can also be used to protect spouses from each other’s debts.
If you and your spouse decide not to get a prenuptial agreement, the state will decide how your income and property is divided should you divorce or die without a will or trust. Without a prenup, the state of Utah has a shared ownership policy regarding all property of married persons, so even debts are part of both spouses’ responsibility.
Posted by: on: Feb 21, 2014 @ 12:29Posted February 21st, 2014