James R. Balmforth: Why You Need a Prenuptial Agreement

The last thing on the minds of most couples is signing a prenuptial agreement. It may not be the most romantic thing to discuss but if you are entering into marriage, it is an important subject that needs to be addressed. There was a time when prenuptial agreements were only for the wealthy. But if you own any kind of property or significant assets, it is important to protect your financial interests. Not matter how strong bond a bond you may have with your fiancé, there is no guarantee the marriage is going to last forever.

Take Control of Your Life

The truth is not all marriages are built to last. If you have significant assets and property, everything you own could be at risk. It is important to protect yourself. One of the guarantees of divorce court is there is no sure thing. Rather than take chances, more people are discovering it is best to have a prenuptial agreements to protect their personal and financial interests.

HERE ARE A FEW REASONS WHY IT IS BENEFICIAL TO HAVE A PRENUP.

Protecting Your Wealth:If you have significantly more wealth than your partner, it is vital to have a prenuptial agreement. Critics of prenups often say it takes the romance out of marriage. But that is not necessarily true. It actually proves your fiance is marrying for who you are rather than your money.
You Have Greater Income than Your Partner: Another benefit of prenuptial agreements is to limit the amount of spousal support should the marriage end in divorce. Alimony is often based on the earnings of each spouse.
You are Remarrying:Your life will go through changes. Chances are your financial situation may be different in your next marriage. Many people who get married for at least a second time have children from their first marriage or have child and spousal support obligations. A prenuptial agreement helps ensure your assets are allocated to the right family members in the event of your death.
Your Partner Has Debt Issues:Many people often make the mistake of entering marriage without knowing their partner’s financial situation. If your fiance has accumulated debt, it could become your responsibility. A prenuptial agreement can protect you from inheriting your partner’s debt.
You Are a Business Owner:There are many risks when entering a marriage. If your marriage falls apart, your spouse could end up owning a major share. A prenuptial agreement can help ensure your spouse does not become a business partner.
You Earn Less Money Than Your Partner:When most people think of prenuptial agreements, they think of a document that generally protects a spouse that either earns more money or has more assets. But it can also protect those who earn less.

THE PROS AND CONS OF KEEPING THE HOUSE AFTER DIVORCE

Maybe you love the house you’ve shared with your soon-to-be ex-spouse, or maybe it’s haunted with painful memories, or maybe the mortgage and general upkeep are things you’re happy to leave behind. In any case, Utah spouses who are going through divorce will want to weigh their options carefully in matters of property division.

For example, sometimes spouses agree that selling the home they shared is a good way of making a clean break. In this case, it is still important to take into account certain costs associated with the sale, such as working with a broker, scheduling house showings and figuring tax liabilities. It is also important to plan beforehand how any profits will be distributed, directly or in escrow.

There is also the unpleasant situation of neither spouse wanting to let the property go. Major disputes can erupt over the marital home, but both parties will want to be sure before they fight for a piece of property that may or may not be worth the struggle in the long run. There may be other assets that are more valuable than a home and its mortgage and maintenance.

Keep in mind that retirement accounts, stock options and other investments are also considered marital property.

If both spouses agree that one party should keep the house, then the best course of action may be to refinance in the name of the person who stays. The spouse who gives up the home will also want to speak with an attorney about ensuring that liability for the house falls solely with the person who keeps the property.