When a couple is planning to marry, they might want to enter into a premarital agreement, which sets forth what will happen to the spouses income and assets in the event of separation divorce or even death. But most importantly, it takes care of property in case a marriage ends, meaning that the property can remain separate, rather than subjecting it to equitable distribution law or letting it remain a community property.
These agreements are increasingly becoming popular for various reasons. The first one is that people today tend to concentrate on their careers more and delay marriage. Such that by the time they decide to marry, both partners have accumulated some assets, which are worth protecting. Such an agreement will ensure that the property goes to the children in the event of a divorce, and many couples are considering these agreements just to avoid going to court. Whatever the reason to get such an agreement, Lincoln branch of solicitors will always be very helpful along the way.
We cannot overstate the benefits of a premarital agreement. Although most divorces do not end up in court, often times they are very expensive. One of the main things that most people overlook is that property in marriage is communal. It becomes very hard to decide who receives what property, requiring a lot of time and money, but a premarital agreement will solve such problems even before they occur.
These agreements are best for couples who want to keep their assets and properties separate and avoid a potential court distribution in the event of divorce. You can include any kind of property in this agreement, such as stocks, motor vehicles, homes, businesses, bank accounts, as well as any other personal belongings. Notably, debt can fall under separate property, which means that one partner is not responsible for the other’s debt.
Such an agreement is very helpful in preventing a property from falling under joint property, which can easily happen in payments made out of joint accounts or co-mingled. For instance, one spouse may owe a huge student loan, which they can agree to keep as separate debt, meaning that only one spouse will be responsible for the debt in the event of a divorce.