Prenups Are Not Just For The Rich
You should consider a prenup even when you are not rich.
Prenup is nothing to do with being rich and famous. Experts opine that any couple who walk down the aisle without assets may still require a prenup. This is needed to protect themselves or the assets they might inherit. A number of excellent reasons exist as to why any person should hire a lawyer to make a prenup before they sign the marriage form.
Clear distinction of debt
It is strongly recommended to draw up a prenup if one person is heavily in debt. In normal cases, premarital debt will be separate debt. However, as time passes, it could blur debt consolidation and refinance. It makes sense to be clear at the onset that debt will remain with the person who incurred the debt in the first place.
Even if the marriage is a happy one, large debts over time could lead to marital problems. Most marriage difficulties are linked by the debts accrued by the couples. It gets especially complicated when the responsibility for that debts is not clearly laid out. To give an example, if one party decides to take out a loan during the marriage, to repay the old debt, then that new loan could be martial debt that both parties are responsible to repay. Or if the pre-marital debt is not repaid, the interest may be crippling, and eventually become a pain for both the parties.
Therefore, it is reasonable that couples should go for an agreement which lays out exactly whose obligation it is to pay these loans. If one-half of the couple is free of debt, they may want to remain that way.
Significant trust fund
There is a possibility that one-half of the couple may inherit a considerable sum of money. It is vital to protect such inheritances or any inherited trust fund assets. Typically, inheritances are not treated as marital assets, but to remain that way, commingling must not occur in any circumstance Commingling of money can complicate the inheritance. There are several behaviors that the Courts consider commingling and can jeopardize the entire inheritance.
If you are thinking of getting married and one or both of you would like to discuss how debts and assets before and after marriage may be affected, please contact us right away. Feel free to call (305) 615-1005 to schedule an appointment.
We'll sit down with you, go over the details of your case, and help you determine what the next steps should be.