Whether a couple is older and have been in previous marriages or a couple is younger and just getting out of college with debt, a prenuptial agreement can be an important part of planning for a future. A prenuptial agreement allows a couple to lay out how to handle financial issues in their marriage, as well as how assets should be divided if the marriage ends.
Prenuptial agreements can act as a financial plan that outlines how a couple will handle their debts and assets. This may or may not mean assigning a person to be responsible for certain payments or debts, but it should create a list of priorities. If there are children from a previous marriage, a prenuptial agreement can allow a couple to determine how much of their assets will go to caring for these children.
Part of creating a financial plan in a prenuptial agreement involves setting out what current assets a couple has. This involves listing current income along with any property of value, be it investments or real estate. Debts should be listed as well so a couple has a complete picture of their soon to be spouse’s financial state.
A prenuptial agreement can help make a divorce smoother by determining in advance how many financial issues are to be handled. However, they cannot cover everything, especially if a couple has children. Issues of child support and custody generally cannot be covered by prenuptial agreements, so it will be up to divorce proceedings to determine their outcomes. A lawyer may be able to assist someone in drafting a prenuptial agreement as well as explaining what it can and cannot do.