Pros and Cons of Prenuptial Agreements

 Posted on July 28, 2013 in Prenuptial and Postnuptial Agreements

Prenuptial agreements, or premarital agreements, have the illusion of being solely reserved for the famously wealthy.  However, that really is not the case.  Many everyday people have found that prenuptial agreements can be beneficial in the event of a separation or divorce.  There are both pros and cons of prenuptial agreements. Premarital agreements are the tools that determine what each spouse has in non-marital property in the event of a divorce, legal separation, or the death of a spouse.  They are founded upon contract law. Prenuptial agreements can be beneficial in that they can ultimately reduce the cost of potential litigation by defining a couple’s property rights.  As far as cons go, prenuptial agreements can lead to unfair bargaining and failure to disclose the extent of all property. Prenuptial agreements allow for wealth to be passed down to children from prior marriages. This also applies to those older people who decide to remarry; they may choose to leave their “lifetime’s worth of wealth” to children from a previous marriage. In the event of one spouse entering a marriage after years of running a business, a prenuptial agreement can protect the business against unwanted involvement. However, those parties who helped build a business during marriage can sometimes be at a disadvantage because of this.  In general, the courts will grant business-building spouses fair, equitable amounts. Prenuptial agreements can have both beneficial and detrimental consequences.  If you and your soon-to-be-spouse are considering creating a premarital agreement, be sure to contact an experienced Illinois family law attorney to ensure that yours is fair to all involved parties.