In the climate of a 50-percent-divorce rate, prenuptial agreements in Mississippi are more common today than ever before. A premarital contract can lend peace of mind to a spouse-to-be who wants to protect personal and business assets. Like any decision, there are pros and cons to be considered, as outlined by FindLaw below.
Pros of making a prenuptial agreement
If one of the spouses has run up some big debts, a prenup can protect the other spouse from being liable for repayment of funds. Another reason for the agreement is to safeguard your marriage “equity.” Say you give up a lucrative job in order to stay home and raise children. A contract can help get you fair compensation for making the sacrifice. Some additional pros of having a contract include:
- Setting limits on the amount of spousal support payments should the marriage not work out
- Protecting a business or practice that you have built from having to be divided with a spouse
- Protecting the inheritance of your children and their children from a previous marriage
Another benefit of having a contract is a non-monetary one. A prenup can also be used to define roles and responsibilities of each person in the marriage.
Cons of creating a premarital contract
If a spouse goes into business, it is never by themselves. Whether they work at or for the company or not, both spouses are building equity in it by virtue of their partnership. If your agreement bars you from the part of the business you are entitled to, you lose that equity. Addition cons include:
- You may be prohibited from collecting your rightful inheritance should your spouse die
- You could be limiting the payment amount that you would receive in case of divorce
- Some people may feel like they are starting their marriage under a cloud of distrust by having a contract
When you are in love, you cannot picture it ending and therefore, may not pay close attention to the contract you are being asked to sign. You may be so much in love that you do not doubt that marriage will last forever. A lot of ex-spouses felt that way.
This article is general in nature and should not take the place of legal counsel.