The Benefits of Choosing a Prenuptial Agreement in Minnesota

Posted by Tentinger Law Firm

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Minnesota Prenuptial Agreement Lawyer

As your wedding day approaches there are many things you and your partner will have to take care of to not only ensure that your special day goes smoothly, but also in order to ensure that you are prepared for your new life together. One thing more couples are choosing to do before their wedding day is to sign a prenuptial agreement.

A prenuptial agreement (also known as a prenup or an antenuptial agreement) is a legally binding contract that couples sign before entering a marriage that helps to determine how couples will divide assets and debts in the event of a divorce. Once seen as something only the rich needed to protect their assets before entering a marriage, prenuptial agreements are growing popular amongst a variety of couples as a way to establish the property and financial rights of each spouse before marriage.

While you may not want to think about your marriage ending in divorce as your big day approaches, choosing to discuss your finances and the potentiality for divorce now can prove to be beneficial down-the-road. If you are uncertain whether a prenup would be right for you and your partner, here is a quick overview of a few of the reasons you should consider signing a prenup before you get married.

Make Things Easier in The Event of Divorce

While everyone hopes that their relationship will last, the fact is that almost 50% of marriages end in divorce. Signing a prenup can then help you to prepare for this potential scenario by allowing you to predetermine certain terms of the divorce.

Without a prenup, a divorce can end up being a lengthy, stressful, and expensive process filled with months of bickering and talking through lawyers as you argue over the division of assets. Signing a prenup will then help this process to go much smoother as it will allow you to make decisions about your assets now when you are in a clearer headspace, helping you to reduce your stress later on.

Prenups Make You Discuss Your Finances

One of the primary causes of divorce is financial problems and the stress this can cause in a marriage. Part of the problem is that many couples do not take a realistic look at their finances, and plan for the future, before getting married.

However, working on a prenuptial agreement forces couples to look at their finances including their income, spending habits, and debt, which can help them to go into their marriage with a more realistic financial plan. In fact, the conversations a prenuptial agreement forces couples to have can reduce stress later on and provide a stronger foundation for your relationship as you enter marriage.

Prenuptial agreements can also strengthen relationships by forcing couples to communicate openly and honestly as well as by teaching them the importance of compromise.

You Own a Business

A prenup can be particularly crucial if either you or your future spouse own a business. Even if you started the business before you met your partner, they may try to claim a portion of the business in the event of a divorce.

This could lead to unfortunate scenarios such as you becoming business partners with your ex, or you may even have to buy out your spouse’s portion of the company, which could force you to sell your business.

Prenuptial agreements are then a necessity for business owners as they can help to ensure that your business remains separate in the event of a divorce.

You Have a Lot of Debt

You should also consider a prenup if either you or your spouse (or both) are entering the marriage with a great deal of debt. The fact is that it is becoming more common for people to enter marriage with thousands of dollars in debt from credit cards, student loans, and previous marriages.

However, in the event of divorce, you or your spouse may find yourself shouldered with the other person’s debt, and before you know it you may have creditors coming after your assets. A prenuptial agreement can help to define each of your debts entering the marriage, which can help add a layer of protection for each of you should you get divorced.

Helps Define Assets

A traditional reason to get a prenup is if either party is entering the marriage with large assets such as inheritance money, a trust fund, property, or accumulated wealth and investments. A prenup is particularly common if one spouse has significantly larger assets than the other.

While Minnesota is not a community property state (meaning that assets are not automatically divided in half during a divorce), your assets will be divided up during divorce proceeding based on what a judge deems as fair for both parties. However, if you have more assets than your spouse you could stand to lose a lot in a divorce without a prenup, which can be particularly devastating if you have a certain piece of property that is important to you (such as a family cabin), as you could lose it in the divorce.

A prenup will allow you to define each of your assets, and what each spouse will be entitled to in the event of a divorce, before you get married, allowing both of you to protect your assets.

Protects Stay-at-Home Parents

A prenuptial agreement is also a good idea if you or your partner plans to quit their job in order to raise children and/or maintain the household after getting married. In the event of a divorce, the parent who has not been working may find it difficult to re-enter the workforce, as it can take time to find a job after a period of unemployment.

A prenuptial agreement can then protect the stay-at-home parent by ensuring that they have enough funds to live off of during the transitional period after the divorce. However, it is important to remember that, in Minnesota, prenuptial agreements do not determine custody or child support.

You Have Children from Past Relationships

It is also important to consider a prenuptial agreement if either you or your spouse has a child from a previous relationship. Getting a prenup can help to protect your children and their futures by determining which assets will be protected for the future of your children in the event of divorce. This is particularly important if you already have money set aside for your child’s education.

While everyone hopes that their marriage will be a success, signing a prenuptial agreement before you get married is a smart decision as it will help to protect you, your partner, and your children in the event that your marriage comes to an end down-the-road.

Contact Us Today To Speak To An Attorney

Contact the Tentinger Law Firm at 952-953-3330— or use our quick contact form– to find out more about prenuptial agreements and the benefits they could provide to you and your partner.