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5 types of Alabama residents who may need prenuptial agreements

Many Alabama residents think that prenuptial agreements are only for celebrities and the very wealthy. On the contrary, prenuptial agreements are actually very useful for a number of average people in the Birmingham area.

You might be wise to consider a prenup, for example, if you have children from a previous relationship. A prenup allows you to designate certain assets to your children in the event of divorce or death; without a prenuptial agreement, these assets would likely automatically becomethe property of your spouse.

Who else might benefit from prenups?

  1. Those who may receive an inheritance in the future and want to ensure that this will be their personal property.
  2. Those who are going into the marriage with assets, like a home, stock portfolio, or family business.
  3. Those who are far wealthier than their spouse-to-be.
  4. Those who will leave the workforce to stay-at-home to raise children or run the household during the marriage; a prenup allows such individuals to protect their rights to certain assets in the event of divorce. Should such individuals need to return to the workforce post-divorce, their earning power will be diminished from the time spent at home, and it can be important that this is addressed in the divorce settlement.
  5. Those who plan to help their spouse pay off debt or pay for college; a prenup can help ensure that these sacrifices will be recognized in the event of the divorce, so that the spouse who had help paying debt or finishing school is not the sole one to reap the reward of this.

This list is not complete. Prenuptial agreements are not for everyone, but they are useful tools in many marriages and divorces. Marriage is a legal and financial union, and individuals who enter into marriage can protect their interests by entering into prenups. Alabama residents must take note, however, that prenuptial agreements are legal contracts and they should be entered into under legal counsel.

Source: BankRate.com, “Everything you need to know about prenuptial agreements,” accessed Jan. 24, 2014