How a Prenuptial Agreement Can Protect Your Premarital Assets in a Divorce
Protecting your interests is the most important thing when going through a divorce. The assets you and your spouse acquired during the marriage are at risk of being divided by the courts.
Although premarital assets may not be subject to being divided in a divorce, a prenuptial agreement can give you another level of protection to ensure that your premarital assets remain yours.
What are Premarital Assets?
Any assets you owned prior to your marriage are considered as premarital property. These assets can include real estate property, investment accounts, retirement funds, outstanding debts, and personal property.
A prenuptial agreement is a contract that you can put in place to outline how assets acquired during the marriage will be handled in the event of a divorce.
It establishes the rights and obligations of each party, making it easier to address questions related to separate and marital property.
In general, Georgia family law courts will assess the property owned by you and your spouse. Assets acquired during the marriage will be divided and fairly distributed between both parties.
Premarital assets typically aren’t divided since they were acquired before the marriage. Your prenuptial agreement can list separate property to ensure that these assets are fully protected in a divorce.
How to Make Sure Your Premarital Assets Are Protected
The problem with premarital assets is that they can easily turn into marital property if you’re not careful. This can put your premarital assets at risk in a divorce, especially if you haven’t put a well-drafted prenuptial agreement in place.
A prenuptial agreement can ensure that the assets you acquired before your marriage remain separate from marital assets.
Premarital assets shouldn’t be commingled with marital assets. This occurs when one spouse uses premarital assets to pay off debts, make investments, or enter a business venture during the marriage.
A prenuptial agreement protects both parties by preventing disputes related to how assets will be divided in a divorce. Costly and lengthy legal battles are often the result of not preparing in advance.
An average of half of all marriages ends in divorce. Establishing a prenuptial agreement can be one of the smartest steps you take to protect your long-term interests.
Protecting Your Premarital Assets With a Prenuptial Agreement
Making a list of all your assets, income, liabilities, and other aspects of your personal finances is the first step to protecting your premarital assets in a prenuptial agreement.
Full disclosure of all assets is a legal requirement that ensures that your prenuptial agreement is legally binding.
Your prenuptial agreement can include information about how premarital debts will be resolved. It can address the appreciation of property value, capital gains, and dividends resulting from any premarital assets.
Failing to disclose your assets can lead to unwanted legal hassles for you and your spouse. Working with a qualified family law attorney helps you establish an agreement that offers the protection you need and remains valid under Georgia law.
Your attorney can help you determine the best legal strategies for protecting your premarital assets so that you move through the divorce process with financial security and peace of mind.