When Indiana residents are setting up their wedding plans, some couples are thinking of ways to protect their assets in case their marriages end up in divorce. A prenuptial agreement is a contract signed by a couple before they get married that lays out the plan for splitting up assets if they divorce. While prenups are common, they aren’t right for everyone.
When are prenuptial agreements not a good idea?
With a prenuptial agreement, both sides must disclose all of their assets in order for the agreement to be considered valid. Sometimes, people don’t want to disclose all of their assets for any number of reasons. For instance, some people want to make sure that any children they have from prior relationships have protections against financial harm if the new marriage fails. People like this might look for alternatives to the prenuptial agreement.
What are some alternatives for people who want to avoid prenuptial agreements?
One way to possibly avoid a prenuptial agreement is to set up an asset protection trust. This trust will allow you to keep the property that you bring into a marriage separate from your joint assets. This trust will contain the assets that you don’t want to bring into the marriage, and your spouse doesn’t even have to know about them. The trustees you appoint to oversee the trust will be in charge. You can then make yourself a beneficiary of the trust so that you gain access to the assets without anyone having to know.
A key thing to note is that the trust must be set up before you get engaged. If you don’t, you could be guilty of fraudulent conveyance. Fraudulent conveyance is a term that means you’re illegally trying to hide money that you’re obligated to share with another party. This could hurt you if you do end up getting a divorce.
Where can people go for help setting up premarital contracts?
If you are looking for ways to protect your assets prior to getting married, you may benefit by working with an attorney who has experience handling marital contracts. An attorney may help you understand your options and prepare all the documents on your behalf.