MIAMI, Florida. More and more couples are signing prenuptial agreements before they get married. According to Us, Gwyneth Paltrow recently signed her own prenuptial agreement before tying the knot. Yet, there are diverse ways you can protect your assets before marriage. One way is to put a prenuptial agreement in place. The other is to set up a trust. Which is better?
In some cases, it might be wise to have both a trust and a prenuptial agreement. For instance, if you are bringing significant assets and money into the marriage, both a trust and a prenuptial agreement can protect your assets while clearly outlining who owns what so there is no confusion. According to the New York Times, a trust alone might not be sufficient to protect your assets, especially if you placed money into the trust after your marriage. Having a prenuptial agreement in place that stipulates that the trust is not considered marital property can increase the chances that a trust will be protected during divorce. That said, according to Forbes, assets placed in a trust before you get married will generally be considered separate property. However, individuals can jeopardize this protection if they put money into the trust after they get married.
The kind of trust you establish can make a difference in how protected you are. Certain trusts act more like corporations and these trusts may offer more protection. Additionally, in order to create these trusts, an individual does not need the permission of their future spouse. If you do plan to use a trust, it is important to speak to a qualified lawyer to ensure that the terms of the trust are designed to protect your assets.
However, there are cases where only a prenuptial agreement will be necessary. If neither you nor your partner own significant assets, you may still want to put a prenuptial agreement in place. Such an agreement can clarify who owns which debts going into the marriage, if each of you have debts, and it can also clarify what happens should you and your partner split. While you may not have assets now, in the future, you may share a home or a bank account. It can be helpful to be clear on how you’ll manage money and these assets before you enter the marriage.
That said, if you plan to draft a prenuptial agreement before you get married, it is important to do it sooner rather than later and to have the help of a qualified prenuptial agreement lawyer in Miami, Florida like Sandy B. Becher, P.A. How your prenuptial agreement is worded can make a big difference in whether it will be honored by the courts. Don’t wait until right before you get married to discuss finances. If you’ve recently gotten engaged, visit us at https://sandybecher.com/ to learn more about how a prenuptial agreement can help you begin an important conversation about money with your future partner.
Sandy B. Becher, P.A.
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Miami, FL 33131