Most people’s thoughts about prenups are of super-rich or celebrity individuals trying to protect enormous fortunes. In the real world, prenuptial agreements are not just for billionaires or couples with high incomes or significant property. Prenups can be a valuable estate planning tool for any couple who wants to be prepared for all situations in life.
A prenuptial agreement, also known as an antenuptial agreement, in Kentucky is a written contract that specifies how a couple will manage their property, debts, and financial obligations during marriage or in the event of divorce. Prenups are not a sign of distrust but are an exercise in clarity, protection, and even the prevention of potential future disputes.
Understanding Prenups in Kentucky
One common misconception about prenups is that they are only for those who have substantial wealth. In reality, a prenup can be beneficial for couples at any financial level, as it allows them to set clear expectations about financial matters and protect each other’s interests. Another misconception is that signing a prenup signals distrust or a lack of commitment. Instead, a prenup is a responsible financial planning tool that can provide security and clarity for both parties.
It’s similar to purchasing insurance coverage in that it helps to ensure that both parties are protected and that their wishes are known and respected. Prenups can also help couples discuss their financial expectations before marriage, providing peace of mind and a solid foundation for long-term financial planning.
Protecting Individuals and Assets
A prenup agreement can help you differentiate between separate property and marital property. Separate property refers to anything that you or your partner owned before getting married. Marital property, on the other hand, is the property or assets that you and your spouse acquired during your marriage. Kentucky is an equitable distribution state, so in a divorce, marital property will be divided fairly.
If you do not have a prenup in place, the courts will have the final say on what constitutes marital property, and the results can be unpredictable. When you define what is separate and what is shared, you and your spouse can avoid disagreements. You can also make sure that each partner’s contributions to the marriage are acknowledged.
Prenups can also help shield your spouse from financial surprises. If one of you has significant student loan or credit card debt, a prenup can help clarify how it will be addressed. Or, if you or your partner owns a business, has significant investment assets, or is likely to receive an inheritance, you may use a prenup to ensure those assets are protected while still supporting your mutual goals as a married couple.
Planning for Children and Blended Families
Prenups can be about more than money. They can also cover the care of children from previous relationships. They cannot, however, cover custody or other arrangements for children from the marriage itself.
Prenups can also address financial support for children from a prior marriage or relationship. This can be especially valuable for blended families. A prenuptial agreement can help to ensure that all children are properly provided for and prevent misunderstandings down the road.
Prenups can be used by parents who plan to marry or who already have children. Parents can use a prenup to protect their children’s inheritance rights. They can specify how they want their property or other assets divided in the event of divorce or death, without pitting the surviving spouse against children or stepchildren.
According to one recent survey, only 15% of participants who had been married signed a prenup. However, 42% of the U.S. adults surveyed stated that they support the usage of prenups, and 35% said they are likely to use one if they marry in the future.
About Stange Law Firm
At Stange Law Firm, we understand that every family is different. However, regardless of financial status, we know that a prenup can be beneficial. We will help you navigate all the details to craft an agreement that is appropriate for your family and considers your family’s needs and long-term stability. We do this with empathy, attention to detail, and a legal strategy that protects you and your child’s best interests.
FAQs
Q: Can a Prenup Protect Children From a Previous Marriage?
A: Yes, prenups cannot specify custody, but they can cover financial issues related to children from previous marriages. This includes financial obligations to children as well as the inheritance rights of children from a previous marriage. A lawyer can help you formulate a legally binding prenup that protects children from a previous marriage.
Q: What Types of Assets Can a Prenup Cover?
A: Prenups can include real estate, bank accounts, retirement accounts, business interests, personal property, inheritances, and debts. They specify which are separate and which are marital to avoid conflicts in case of divorce. Prenups are designed to provide clear lines and definitions of what property belongs to whom and what would happen to it in the event of a divorce.
Q: Is a Prenup Legally Enforceable in Kentucky?
A: Yes, a prenup is legally enforceable in Kentucky. However, a prenup should never be created under duress, against someone’s will, or involve illegal or unallowed clauses. Additionally, the prenup should not obviously and disproportionately benefit one spouse over the other. Prenups should also not conceal assets from the other spouse.
Q: Can Prenups Reduce Divorce Costs?
A: Yes, in a way, a prenup can reduce your divorce costs. By addressing property division, asset protection, and debt responsibility in advance, prenups can simplify divorce proceedings, reduce litigation, and help mitigate emotional and financial stress. This can also help avoid contention and lengthy court cases. A lawyer can help you draft a strong prenup.
Contact Stange Law Firm Today
Even if you are not considered wealthy, a prenup can help protect your assets and future. Stange Law Firm can help you create one that does just that. The sooner you engage our experienced legal team, the sooner we can help you reach an amicable resolution to your situation. Contact us today to speak with a member of our legal team.