Benefits of a Prenuptial Agreement in a Divorce
Divorce can be a painful and emotional experience. However, if you had the wherewithal to enter into a prenuptial agreement before your marriage, you can now benefit from your good planning. Here are some of the top benefits of a prenuptial agreement in a divorce:
Protect Separate Property
Prenuptial agreements allow you to protect separate property and prevent it from getting transformed into marital property that is subject to division during the divorce. For example, you can outline in your premarital agreement that your family business or retirement account is your separate property. In the event of a divorce, these assets are safeguarded, and you can avoid disputes regarding their distribution.
Avoid Default Laws
Tennessee Code § 36-4-121 is the state equitable distribution law. In addition to explaining how the court divides property at the time of divorce or legal separation, it also contains specific definitions regarding different types of property and when property is considered marital. For example, it states that the increase in value of your separate property can be considered marital property if your spouse “substantially contributed” to its preservation and appreciation. It also considers various benefits you receive through your employment, such as vested and unvested pension benefits, stock options, retirement benefits, and other fringe benefits to be marital property. By working with a prenuptial agreement lawyer in Nashville to write your own agreement, you can avoid these state default rules and protect the assets you want to be considered your separate property.
Providing Clarity Regarding Alimony
Your prenuptial agreement can provide details about the amount, duration, and conditions under which one spouse will pay spousal support to the other spouse. This provides clarity to both spouses and allows them to better plan their finances when these details are not left up to a court to decide.
Debt Protection
Your prenuptial agreement can also potentially protect you from incurring debt from your spouse. By clearly stating which debts each spouse is responsible for and not adding yourself as a responsible party to the account, you can avoid taking on the burden of your spouse’s pre-existing debt.
Faster and More Peaceful Resolution in Divorce Proceedings
Because property distribution and spousal support are often hotly contested issues, you and your spouse can minimize conflict during the divorce. You have already made the difficult decisions regarding these matters, so they do not have to be litigated in court. This can save significant time and expense during divorce.
By entering into a prenuptial agreement, you can potentially avoid a lengthy legal battle. This can also help you avoid a lot of the conflict that arises during a divorce because there is less to disagree about. You and your spouse may be better able to openly communicate about the remaining issues involved in your divorce case, such as child custody and support. Our experienced Nashville family lawyers explain that if you can have an uncontested divorce in which you and your spouse agree to the main components of your divorce, you stand to save even more time and money.
Contact Our Nashville Family Lawyers for Assistance
If you are considering a prenuptial agreement, would like one of our experienced divorce lawyers in Nashville to review your prenuptial agreement, or would like to know how your existing prenuptial agreement may affect your divorce, contact Burdine Law Firm, PLLC.