The Case for Signing a Prenup, Even If You Trust Your Spouse

Prenuptial agreements used to have a bad reputation, but former skeptics have increasingly embraced them. Dave Ramsey, to whom millions of listeners turn for financial advice, has long held that signing a prenuptial agreement is tantamount to betting against your marriage. He recently told his audience that he has changed his tune. Ramsey is not part of the growing chorus of voices that hold that you cannot trust anyone. Rather, financial realities have changed. Ramsey encourages drafting a prenup that accounts for scenarios that are as likely to arise while you arise or upon the death of one of the spouses as they are to arise in the event of a divorce. If you have signed a prenup, it means you have a plan. It does not mean that you and your spouse expect to divorce, don’t trust each other, or refuse to merge your finances. For help drafting a prenuptial or postnuptial agreement, contact a Mississauga family lawyer.

A Prenuptial Agreement Can Help You and Your Spouse Jointly Set Boundaries Against the Outside World

The primary purpose of a prenuptial agreement is to outline which items of property are separate property, belonging to only one spouse, and which ones are marital property. Marital property is subject to division in a divorce; the couple may agree during mediation on how to divide their marital property, but if they cannot reach an agreement, the court will decide the fairest way to divide it. Likewise, inheritance laws treat separate property and marital property differently.

It is a good idea to designate an asset as separate property if one spouse owns it jointly with members of his or her family of origin. For example, if the husband owns the house near High Park jointly with his son from his first marriage, it should be his separate property, or else it could turn into an ugly legal battle between stepmother and stepson after the husband dies; the Mississauga house where the spouses live together can be marital property or the wife’s separate property, as the couple chooses. Likewise, it is a good idea to make high risk assets and debts separate property; this way, the debts associated with them cannot become the responsibility of the other spouse.

It’s Never Too Late to Sign a Postnup

Especially if you and your spouse got married when you were young, you probably did not become aware of these financial realities until later, when the financial mistakes of your in-laws or your spouse’s business partners threaten to tear apart your marriage. A postnuptial agreement has the same effect as a prenup. The only difference is that you sign it when you and your spouse are already married. A postnup can also help you prevent conflicts related to inherited property.

Contact Zagazeta Garcia LLP About Prenuptial and Postnuptial Agreements

A family lawyer can help you draft a prenuptial or postnuptial agreement.  Contact Zagazeta Garcia LLP in Mississauga, Ontario to discuss your case.

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