Premarital Agreement: A Wise Financial Security in the Event of Divorce

Premarital Agreement: A Wise Financial Security in the Event of Divorce

Dec 29

A premarital agreement makes clear to those entering into marriage how their assets and properties, acquired either before or during marriage, ought to be distributed in case of divorce, legal separation or the death of one spouse. This agreement is actually a contract aimed at protecting the financial interests and future of both spouses, in case the marriage does not work and gets dissolved.

Though some engaged couples find premarital or prenuptial agreement as something that will only take away the romance in their relationship and substitute it with mistrust, many others see it as a wise financial security that will open more rooms and make couples more financially generous and open to one another.

The practice of entering into a premarital agreement takes it roots during the early 19th century, a time when women, who entered into marriage, were recognized only as “extensions” of their husbands. Back then, there was a law called “coverture,” which required women to relinquish their legal rights to their husbands upon marriage. Due to this law, married women lost their rights to get an education without their husband’s consent; they were also required to transfer their properties to their husbands, as well as sell or give up ownership of anything, transferring everything under the name of their husband. If ever allowed by their husbands to work, they will have to surrender to them everything they will earn. In the event of divorce, however, there was no guarantee that they will recover any of whatever they have given up.

The unjust effects of the coverture law were eradicated by the Married Women’s Property Act, which introduced and enforced the prenuptial agreement in 1848. It was this Act that gave back to married women all their rights, during and after marriage. Some of the real and actual advantages of the agreement were: preservation of inheritance and family ties; security over both business and personal properties made before marriage; and, assured protection of the financial security of the children.

Premarital agreements also allow for swift court decision on division of properties during a divorce case, saving divorcing couples headache, worry, money and time that lengthy discussions and arguments usually take. Financial experts advise engaged couples, though, who will decide to enter into a premarital agreement, to discuss the issue honestly, openly and candidly, so as not to make it sound and appear hurting or insulting to anyone.

In the city of Austin, Texas, particularly, Austin divorce help is made available to couples in settling the issue of property distribution, making this divorce-related issue easier and faster to settle, especially for couples who entered into a premarital agreement.