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Premarital and postmarital agreements both valuable in divorce

You might be familiar with the concept of a prenuptial agreement, but did you know that it is possible to create a similar document after you tie the knot? Prenuptial and postmarital agreements both play an important role in financial planning and potential property division. Whether you are looking to protect your business assets, family heirlooms or your kids' inheritance, a postmarital agreement might just be the answer.

The importance of prenups and postmarital agreements should not be underestimated. Couples can make important decisions about dividing assets and liabilities in the event of a divorce -- but a prenup also has another function. Consider the fact that a prenuptial agreement can be an integral part of spouses' estate plans, and suddenly such documents gain more credibility and weight.

Although creating a prenuptial or post-nuptial agreement may seem decidedly unromantic, it may be in your best interests to consider drafting this type of document. Even those couples who do not have enormous wealth can benefit from the use of a prenup. This is particularly true of individuals who own their own business, have large retirement holdings or want to retain their claim to real estate and other property.

Prenuptial and post-nuptial agreements help expedite divorces and prevent financial hardship because of litigation proceedings. Few Florida couples want to drag out their divorce in a courtroom; these planning documents can protect both your privacy and your finances. Spouses should be required to disclose their personal financial situations before they get married. By drafting a prenuptial agreement or post-marital document, you and your spouse can avoid many of the travails that accompany modern divorce proceedings.

Source: Pacheco Perez, PA, "Premarital and Postmarital Agreements" Sep. 08, 2014

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