While protecting your financial assets may not be first on your pre-wedding to-do list, if you are a single parent, it is important to revisit your estate plan before you tie the knot. Designing a prenuptial agreement to protect your children from a previous marriage is essential if you want to make sure you have provided for your kids into the future.
Prenuptial agreements are increasingly popular in the U.S. According to Business Insider, attorneys saw a 62% increase in prenup requests between 2013 and 2016. This important estate planning tool details the division of property and financial assets in the event of a divorce or a spouse’s death, including providing for children from a prior marriage.
What can go into a prenup?
One of the reasons that prenuptial agreements are such an effective estate planning tool is that they are comprehensive. In addition to detailed provisions for children from a previous relationship, prenups may include the following:
- Safeguards against the other spouse’s debts
- Divisions between shared and separate property
- Estate plan protections
- Directives to ensure family property remains in the family
Prenuptial agreements can protect a variety of assets you want to pass on, from cash or specific belongings to a family business.
How do I make sure my prenup is airtight?
A well-designed prenup should be extremely detailed and extremely well-documented to guard against potential oversights or legal challenges. Make sure that you painstakingly catalog each asset you want protected, and remember that, in the legal world, there is no such thing as too many backup documents.
Keep in mind that a prenuptial agreement should only be part of your larger estate plan. You will want to make sure to have a solid, comprehensive trust and clear will in addition to a well laid out prenup if you to ensure your children’s inheritance is secure.