Marriage is a beautiful bond between two people who want to commit to growing strong together. However, tough times can change the course of direction, leading to a divorce. On the other hand, a divorce involving high assets can have more complications as compared to a normal one. Therefore, a prenuptial agreement in high-asset divorce cases can be the key player of the resort.
This blog will guide you through the importance of prenup agreements in high-asset divorces.
The Contract of Prenuptial Agreement
A Prenuptial Agreement is a type of contract created by two people before stepping onto the path of marriage. This contract helps in configuring each party’s responsibilities and duties along with property rights as long as the marriage lasts. More commonly, prenuptial agreements determine terms and conditions linked with dividing up financial assets and responsibilities if the marriage falls apart.
The Myth of Prenuptial Agreement
The myth of prenuptial agreements is that it has always been a sensational and controversial topic for couples. Media displays prenuptial agreements as a means that celebrities and other public figures share similar high net worth use. As if it is only used to exceed the amount of wealth that the former spouse can claim.
However, when planned carefully and used correctly, a prenuptial agreement turns out to be a fair way of paying out responsibilities and assets.
What is the Role of Prenuptial Agreements in High Asset Divorce?
Getting a divorce is not an easy job. It involves a tedious process of several legal steps that can be costly, complex, and very lengthy. The entire divorce process generally goes beyond the comprehension of most people.
But having a prenuptial agreement saves you from the tiresome divorce procedure by helping break down the whole process. At the same time, it also ensures your safety and keeps your assets protected.
It’s important to note that prenuptial contracts do not look into child custody or support them.
Let’s learn about the role of prenuptial agreements in divorces:
Separate Assets are Protected
A prenup agreement can prove itself to be a fruitful tool in making a firm ground for ownership of assets. It provides each spouse the benefit of distinguishing what property belongs jointly during the marriage and which is separate.
You must be wondering what a separate property is. It typically includes assets obtained before and during the marriage, such as inheritances and gifts. When you are equipped with a prenup, your spouse can’t take any part of your property which is defined as yours in the agreement. Just in case a marriage takes a drastic change of ending in a divorce your personal belongings will be safe.
Financial Expectations are Clarified
One of the significant reasons that lead to endless arguments and conflicts in a marriage is financial misunderstanding and expectations. The fights can shape the intricacies of the divorce procedure.
Having a prenup agreement can define how savings, debts, household expenses, and other financial necessities will be controlled during a divorce.
The prenuptial agreement will establish an outlet that determines the financial responsibilities and expectations of the spouses in the wake of a divorce. What a nice way to lessen the amount of misunderstandings and conflicts during a divorce, making the overall procedure comparatively smoother to execute.
Lengthy Disputes Can Be Avoided
It’s nothing new that divorces are time-consuming and complex. If the spouses are not willing to give the major investments and assets that are to be divided accordingly, it can take several months to complete and reach a fair conclusion. Experienced Denver high asset divorce attorneys at Hogan Omidi specialize in complex cases of divorce and have handled complicated division of asset cases. Without skilled legal representation, contested divorces can further lengthen the divorce process, causing more stress for the parties involved in the divorce.
A prenup acts as a roadmap, making it crystal clear what needs to be done. It can eradicate the need for physically visiting the court totally. They can just show the prenup agreement and divide the assets according to their outline.
We hope you understand the role of prenuptial agreements in high-asset divorces and can manage yours if need be.