What Does a Prenuptial Agreement Do?
People sign prenuptial agreements for various reasons. Some do so to protect assets. If one person enters a marriage with substantial financial or property interests, that individual may wish to protect those assets in the event of a divorce. A prenuptial agreement can serve as a blueprint for
property division if the spouses later decide to end their marriage.
In some instances, a prenuptial agreement is used to protect certain assets for children from a previous marriage. A prenuptial contract can specify who is to receive what belongings and property in the event of death, decreasing the chances for misunderstandings down the road.
While people enter into prenuptial agreements for different reasons, one thing is clear: This type of contract clarifies each individual's expectations and sheds light on any misunderstandings prior to the marriage.