To many people, premarital agreements are reserved for wealthy individuals who want to protect their assets and investments. However, they also offer compelling advantages to people in any income bracket. Premarital agreements are crucial in a variety of financial situations — especially when someone owns real estate or a share of a business — and provide many advantages.

5 Benefits of Premarital Agreements

1. Protecting Inheritance Rights

The legal rights that come with marriage could complicate the inheritance rights of children or grandchildren from a previous relationship. Deciding these issues before a marriage can prevent confusion in the future and ensure your wishes are respected.

2. Preserving Business Interests

In many states, an ownership stake in a business can be considered marital property and might be divided in a divorce. A premarital agreement allows you to make these investments exempt from property distribution, protecting them from future control by your spouse if you divorce.

3. Shielding You From Debt

In a divorce, debt often is divided along with your assets. However, a premarital agreement can ensure neither of you will be responsible for the financial obligations of the other.

4. Ensuring Compensation for Sacrifices

Many marriages involve one partner making sacrifices to advance the career prospects of the other. While courts often take these elements into consideration when distributing assets, a premarital agreement will ensure you're compensated adequately for these contributions.

5. Defining Divorce Terms

A premarital agreement can remove much of the uncertainty associated with getting divorced. It will establish limits for spousal support and other issues, simplifying the dissolution of the marriage significantly.

As one of Honolulu's premier family law firms, Kleintop & Luria LLP has the legal expertise to help you decide whether a premarital agreement is right for you. Visit their website to learn more about the advantages of getting a premarital agreement and call (808) 524-5183 to schedule a consultation with a family law attorney.