When thinking of marriage, many New York residents may also think about prenuptial agreements. However, they may be uncertain about what to include in such agreements. There are various uses for this type of document that could come in handy in the event of a divorce, and parties may be wise to consider taking the time to create a prenup.
If individuals are entering into a marriage with considerable assets, a prenuptial agreement could help protect those assets. Terms of the agreement could dictate who is entitled to which piece of property during asset division proceedings should a divorce take place. Additionally, business owners may also benefit from agreements in a similar manner by working to ensure that ex-spouses do not have the ability to claim some or all of their companies.
While protecting assets is often a common thought when creating a prenup, protecting oneself from an ex's debt liabilities may also be a benefit. The terms of the agreement may detail who is responsible for which debt in the event of a divorce. This way parties are not left struggling on their own after a separation due to having to handle part or all of an ex's debt balances.
These are just a few uses for a prenuptial agreement that individuals may wish to consider. This document may also lay out alimony and other terms about which the individuals may feel strongly, helping to avoid conflict later. If New York residents would like to create their own agreements in order to be prepared for potential divorce, consulting with experienced family law attorneys may prove useful.
Source: businessinsider.com, "ASK A FINANCIAL PLANNER: 'What should I include in a prenup?'", Sophia Bera, April 17, 2016