While many couples who create prenuptial agreements have wealth, anyone can benefit from such an arrangement. In many cases, it can help Minnesota residents keep the cost of their divorce to a minimum, and this is important because the divorce itself can cost more than a wedding. Divorces tend to be expensive because people often act in an emotional as opposed to a logical manner. They may be willing to spend time and money squabbling over minor household possessions.
A prenuptial agreement makes it possible to clearly establish who owns an asset or is responsible for a debt before a wedding occurs. Generally speaking, assets have not been commingled prior to this event taking place. Therefore, it is typically easier to determine who owns what, and the process of assigning assets and debts can take place in a calm and rational manner.
Couples are also encouraged to create and share a financial statement once a year after they get married. Doing so can be ideal after refinancing a loan or taking other steps that could obscure the source of funding for an asset. It can also ensure that the actions of one spouse don’t negatively impact the other during or after a marriage. Creditors can hold both parties to a marriage responsible for a debt if they are both listed on a loan.
The use of prenuptial agreements can make it possible to save time and money during the divorce process. However, it is important that they are crafted in accordance with state law. Otherwise, they may be declared invalid, which means that a new settlement would likely need to be negotiated. An attorney may be able to help a person create a prenuptial agreement that can stand up to judicial scrutiny.