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4 reasons to sign a prenuptial agreement

Younger couples are more inclined to sign a prenuptial agreement before getting married these days. Perhaps it's because many soon-to-be spouses have grown up with divorced mothers and fathers, and they know the realities of marriage and divorce better than the generations that preceded them. Whatever the reason, these young couples are better at recognizing the potential benefits of creating an action plan that will go into effect in the event that they ever need to dissolve their marriages.

If you're considering a prenuptial agreement, here are four signs that you could definitely benefit from one:

You have a business or significant piece of property

A prenuptial agreement will help to secure your individual property rights concerning a personal business, real estate property or other assets. This will help prevent these assets from being absorbed by the marital estate at a later time.

You have children

Those with children from a prior marriage can protect the inheritance rights of their children by signing a prenup before getting married to a new spouse.

You plan to leave your career for your marriage

Some spouses leave high-paying jobs to get married and be a homemaker. These spouses can make a plan in the prenuptial agreement to ensure they receive compensation during the divorce for giving up a lucrative career like this.

One spouse has a large amount of debt or a large financial account

Spouses can use a prenuptial agreement to protect themselves from assuming the other spouse's preexisting debt and from losing their lucrative, preexisting retirement accounts in the event of a divorce.

A prenuptial agreement is an excellent way to prepare for the unlikely event of a divorce. However, it's vital that spouses prepare these documents and sign them in a legally appropriate manner to ensure they will hold up in court should they ever be challenged during a contentious divorce.

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