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HOW IT WORKS
How it works
A Premarital Agreement is an agreement between a couple that governs property rights, expenses, assets, and liabilities. A lot happens legally when you get married and move in together with your spouse; both assets and liabilities that were once individually owned can become a joint responsibility. Having a Premarital agreement can help you protect yourself and your spouse.
Getting married is a substantial financial event, in addition to a personal one, a Premarital Agreement helps straighten out the financial details before they become a problem. A Premarital Agreement isn't simply a guard against a tough divorce; having an agreement in place can protect specific assets and sort debts so you can enjoy a healthy financial situation and a healthy marriage.
Depending on state, when you get married much of your individual property becomes jointly owned; this includes everything from your earnings to any debts you may incur while married. If either you or your spouse gather any debt from student loans or starting a business both of you are responsible for paying it off. Furthermore, declaring bankruptcy can affect both of you, not just the individual who files. In addition to protecting assets, a Premarital Agreement can be used to manage expenses. This can be important if either you or your significant other have had kids. Having a Premarital Agreement can help you protect the financial well being of you and your spouse.
Other names for this document: Prenuptial Agreement, Antenuptial Agreement, Separate Property Agreement
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