If someone in New York is considering getting married, they may want to think about having a prenuptial agreement drawn up. It is not uncommon for people to think that they do not need a prenup, but they can handle more than just the division of assets if someone gets a divorce. These legal documents can also be set up to handle how debt is allocated and enable people to make children from other marriages the beneficiaries of retirement plans.
When someone gets a divorce, it is not only their assets that are split up; debt is also divided. For example, if one person in a marriage has racked up large amounts of student loan debt, both individuals may be responsible for it. However, a prenup can determine in advance that should the couple split up, all student loan debt will go to the person who benefited from it.
There are a number of savings and retirement accounts that are eligible for division when a couple splits up. However, someone may want to set this money aside for their children instead of having the assets in these accounts given to their new spouse. With a prenup, this can all be arranged and agreed upon beforehand, saving enormous amounts of time in court.
Marriage is more than just an emotional commitment; it is also a financial one. People who are considering marriage may want to speak with an attorney to learn how they can protect themselves and their property from divorce.
Source: Huffington Post, “Prenups: Not Just For The Wealthy,” Jason Marks, April 25, 2013