If you have a Connecticut wedding planned, you may worry about a potentially disastrous financial situation if you divorce. A prenuptial agreement can help alleviate many of these concerns. It can address property disposition upon your separation, including pensions and benefits from life insurance policies.
According to the State of Connecticut Judicial Branch Law Libraries, prospective spouses sign a premarital agreement before the wedding. This agreement contains stipulations regarding finances and property, which can be beneficial if your relationship dissolves.
Provide financial protection
A divorce is often financially devastating, especially if one or both parties have significant assets. Connecticut is an “all property” state, which can make asset division more complex. Whether you have a successful business, investment portfolio or received an inheritance, the court could determine all assets currently held are marital property, regardless of when or how you obtained it. By having a prenup, you can divide assets and debts, determine spousal support payments, if any, and you may avoid lengthy litigation and legal costs.
Address complex situations
Many couples enter marriage with pre-existing financial obligations, such as student loans or credit card debt. If this is a second or subsequent marriage and you have children from previous relationships, you have certain responsibilities. These situations can complicate a divorce and a prenup may simplify it.
Signing an agreement several months before the wedding can ensure both parties enter into the agreement voluntarily. In situations where one party signed while under duress or as a result of coercion, the court may deem the contract invalid. Couples that work together when creating the document can establish an estate plan and reduce future conflict by determining settlement resolution methods, such as mediation.