When love is in the air and you are busy planning your marriage, the least romantic subject you can bring up is divorce. After all, you are looking forward to spending the rest of your life with the person you love. Unfortunately, not all marriages last “till death do ye part.” If your marriage comes to an end through a divorce, one of the issues you will need to address is property division.
A prenuptial agreement, or a prenup as it is commonly known, is a binding contract that sets certain terms for the marriage and its dissolution, should one occur. These are two questions that can help you determine if you really need to sign a prenup.
Is your soon-to-be spouse coming into the marriage with a lot of debt?
Should your marriage end in divorce, assets are not the only thing that will be divided per North Carolina marital property laws. Any debt acquired by both parties during the marriage will also be subject to equitable distribution. If your spouse is coming into the marriage with a significant amount of debt, you may want to safeguard against the risk that they will incur more during the marriage that could affect your future well-being.
Is your soon-to-be spouse a spendthrift?
Marrying a person who has no fiscal discipline will most certainly lead to conflicts in the marriage. And that’s not all. They may also amass debt that will haunt you in the event of a divorce. By signing a prenuptial agreement, you will be taking appropriate steps to protect your interests from the potential of debt that will not contribute to the betterment of the marriage.
Protecting your interests
The idea of discussing the end of a marriage before entering one may seem awkward. However, having this discussion and, thereafter, signing a prenuptial agreement can help you protect your financial interests should things fail to work out in the ways you hope.