When you are exchanging marital vows with the love of your life, it is hard to imagine that one day your marriage will come to an end. Unfortunately for some, divorce happens. And when it does, one of the most contentious issues couples fight over is marital property.
A prenuptial agreement, simply known as a prenup, is a written contract that a couple gets into before marriage. It typically outlines what each party’s property rights will be should the marriage come to an end. There are several valid reasons why you need to sign a prenuptial agreement before exchanging those vows. Here are some of them:
Separate personal property from marital property
While creating the prenuptial agreement, the law requires each party to make full disclosure of their assets and debts. Any asset or debt the couple incurs after the marriage is referred to as marital property and is thus subject to division in strict adherence to Iowa marital property law. A prenuptial agreement makes a clear distinction between what each party came into the marriage with and what they got together. This puts a limit to what each party can claim during the property division process.
Protect you from your spouse’s debts
It is not uncommon for people to get married while in debt. A prenuptial agreement can shield you from your spouse’s debts by bringing to light the separate debts that each party came into the marriage with. In other words, a prenup draws a clear line between personal debts and debts accrued while married.
Prevent costly and acrimonious court proceedings
A divorce can be a protracted and costly affair if both parties cannot see eye to eye on issues like property division. Trying to strike a deal on property division can be daunting when either party is consumed by negative feelings. A prenuptial agreement can help alleviate the headache that comes with fighting for marital assets, making the process smoother.
A prenup is not the reserve of the rich and famous. Find out how you can benefit from a properly written prenuptial agreement during the divorce process.