When most people think of a prenup agreement, they think about a messy celebrity divorce, golddiggers, and class but the reality is prenups are for everyone. Keep reading for three reasons why you need a prenuptial agreement.
Naturally, one of the primary benefits of a prenup is financial security. Couples with a high net worth or a spouse with a large amount of independent income and investments are often encouraged to draft a prenup. When there is a lot of money at stake, a prenuptial agreement can eliminate guesswork and protect your interests.
However, while high net worth couples are the target audience, prenups are for everyone. In fact, a prenup can be a bridge over difficult conversations about debt and income that can cause trouble during the marriage. By going over every detail of your and your soon-to-be spouses' finances, you take the time to really nail down mutual goals and interests while hammering out difficult details like debt.
Business owners also benefit from prenups. In some divorce cases, business assets and holdings are subject to equitable division. This could mean the liquidation of a business in some cases or the revocation of years of earnings. Prenuptial agreements not only protect ownership, but they also protect the future of a business.
Last, but certainly not least, a prenuptial agreement can protect investments. Many couples are marrying later, which means they enter the union with more financial assets. This can complicate the property division process and become very difficult depending on the type of investment. Crypto, for example, is difficult to track because all transactions are encrypted. Not only is it difficult to divide the yield from hidden investments, but it is also further complicated if ownership of the cryptocurrency changes over time. A prenup establishes ownership from the start, eliminating time and guesswork that may complicate a divorce.
In Oklahoma, alimony is an option, not a given meaning either spouse may ask for alimony, but the court will not grant it automatically. Whether the court approves a request for alimony depends on factors like financial contributions, health and wellness, employment status, and child care.
For example, one spouse is unemployed, but they were the primary caregiver to their children. If they ask for support, the court will evaluate the level of contribution to the household and child care and base the award on their final interpretation of the couple’s circumstances.
Other factors include:
- The length of the marriage
- The marital standard of living
- Liabilities for each spouse
- Whether the supporting spouse can maintain a standard of living while paying alimony
- The age of each spouse
Because the state does not automatically grant alimony, it’s up to each party whether they ask for it and the court to determine whether that request is approved. Prenuptial agreements may be used to establish a framework for alimony or a signed agreement from one or both spouses to not request alimony in the event of a divorce.
If a couple decides to include specific terms for alimony, they can submit them to the court during the divorce and the judge will execute them as written or change some terms to better suit the current financial status of each spouse.
Many couples today are children of divorce themselves, and approaching the idea of having children with the likelihood of divorce is heartbreaking. The idea of splitting custody, fighting over holidays, or simply the idea of putting their child through the same childhood they experienced leaves many people with a sense of uncertainty and unease about their future together.
However, it’s important to understand that no one enters into a marriage expecting a divorce, but children of divorce can't help but worry about the future. Not only can a prenuptial agreement eliminate some of the uncertainty, but it can also preemptively protect children if a divorce occurs.
Drafting a Prenup
Prenuptial agreements are for everyone, but it's crucial that you have the help of a qualified attorney when drafting your own. At Nichols Dixon PLLC, we believe in helping families build their futures on solid ground. Our experienced team of legal professionals can help you draft a prenuptial agreement that not only achieves your goals but also protects your future.
Contact Nichols Dixon PLLC today!