A common misconception around prenuptial agreements is that they’re only for wealthy couples. But in reality, a prenuptial agreement can be useful for many types of couples.
A prenuptial agreement (also known as a prenup or premarital agreement) is a legal contract between engaged couples that protect their finances in the event of a divorce. And it’s a step that’s becoming more common for couples as part of their wedding planning.
In the past, the subject of a prenuptial agreement has traditionally been thought to cause conflict between partners and to suggest a prenup means you don’t have faith in the relationship or are expecting the marriage might end at some point. But more and more, couples are looking at a premarital agreement like an insurance policy and as mutual protection.
A prenuptial agreement is especially useful if you are a business owner or as a couple you want to keep your money separate.
Marital property division
Almost half of all marriages end in divorce, so it’s a good idea to protect yourself and plan for a worst-case scenario. Property acquired during the marriage is considered martial property and in the event of divorce in Illinois, will be divided equitably between spouses. This includes the obvious property items like the house and cars, but also includes any retirement funds accumulated during the marriage. A premarital agreement can exclude specific items and protect certain assets from being considered in a property division.
Working with an experienced family law attorney can help you decide which assets to address and protect and create a solid plan that will work for you.