An Overview of Prenuptial Agreements vs. Trusts
Have you ever wondered if you should draft a prenuptial agreement?
With the age men and women are getting married nowadays, the assets both may have can be significant. Men and women are getting married nearly two years later than five years ago.
Regardless of your relationship status, knowing the details and differences between a prenuptial agreement vs. trusts is vital.
Both establish the rights and responsibilities of your assets and debts. But with divorce rates as high as they are, prenuptial agreements protect marriage assets. Prenuptial agreements and trusts have a role in estate and trust administration. But each legal document serves its own purpose and clients.
Here we provide you with a comparison of prenups vs. trusts.
What does a prenuptial agreement mean? This is an agreement between both spouses on what each spouse has the right to in the event of a divorce.
It is an agreement made before marriage, and both partners must sign off on this.
Also, you must know that each spouse needs to have their own attorney when they’re presented with this agreement. The reason for this is that it gives each partner the individual right to understand what they are signing legally. Also, it helps prevent the possibility of one partner signing under duress or collusion.
Prenuptial agreements are becoming popular for millennials. Research shows that millennials contact 62% of lawyers to learn about setting up a prenuptial agreement.
Once this agreement is drawn up and signed, it can help one partner protect any assets they acquired before the marriage.
Unlike a prenup, a trust is a document one partner makes to try and help protect their assets. With this type of document, one partner does not need consent or involvement from the other.
Trusts allow partners to protect assets they have acquired before marriage on their own terms. An example can be putting a business they own in a trust so their partner cannot take it from them.
Does a prenup mean no trust? The answer is no.
You are allowed to have both a prenup and a trust simultaneously. This means that if a partner tries to argue a misunderstanding on a prenup, trusts can help back you up.
Decide Between a Prenuptial Agreement vs. Trusts
Is a trust better than a prenup? This is the leading information about a prenuptial agreement vs. trusts that can help you decide.
Would you like to learn more about a prenuptial agreement vs. trusts? Do you need legal representation? The Dalena & Bosh Family Law team of dedicated and passionate lawyers is here to help you. Call us at 973-377-2066 or message us to get our legal counsel on your case today.