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Prenups, Divorce and Asset Protection

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What is a Pre-nuptial agreement?

In the simplest of terms, a premarital agreement is a written contract created by two people intending to be married. The agreement normally lists all of the property; savings and investments each person owns, as well as their debts, and it specifies what each person's property rights will be after they marry. Both spouses must normally have their own attorneys review the agreement, all assets must have been fully disclosed and separate property must often be segregated.

Before you get married, or propose to get married, protect your families with fairness in a way that won't squash the love! Beware of the typical "prenup"; it doesn't always make for the best relationship.

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Many people think this is a good strategy to protect their assets in the event that their marriage does not succeed. These types of agreements typically explain the division of property and money for spousal support, also known as alimony, in the event of a divorce. Each individual may also set up their intentions about distributing property after one of them dies. This is particularly an issue for second marriages when one or both spouses want to preserve property for their bloodline children or grandchildren from a former marriage.

You are probably familiar with the terms prenuptial agreement or simply a pre-nup depending on the state that you reside. There is also the term ante nuptial agreement, which is similar, except it is done after a couple has been married.

 

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