Property division can be a difficult component of any divorce. Spouses may disagree about what assets they have to divide and how to share them in a fair manner. In some cases, asset distribution becomes such a source of conflict that spouses decide to litigate or take their divorce issues to family court for a judge to decide.
Many people want to avoid scenarios where the courts take over the property division process. One of the ways they might achieve that goal is to sign a prenuptial agreement. Those with valid spousal agreements can frequently avoid the disputes commonly associated with contested divorce proceedings.
What impact can a prenuptial agreement have on the property division process?
Spouses may have already set asset division terms
Prenuptial agreements often help people achieve uncontested divorces by clarifying specific property division expectations. Instead of fighting over how to divide their property when their relationship is at its worst point, they can apply the terms they set when they felt willing to cooperate.
Many people make a point of designating specific resources as separate property in prenuptial agreements. Those who already own businesses or real estate when they marry may arrange to retain it as separate property if they should ever divorce. Prenuptial agreements prevent claims of commingling from endangering separate property and can allow people to protect pre-existing resources or inherited property from claims made by a spouse.
Prenuptial agreements can also describe exactly how the spouses should divide their marital property. They may have made plans for addressing specific resources or simply established guidelines for dividing their property. In some cases, spouses may even address marital debts, which spouses typically have to divide along with their assets.
The existence of a prenuptial agreement helps ensure a low-conflict, amicable property division negotiation process. The spouses and courts can handle property division matters relatively quickly when spouses previously agreed on how to address their shared resources.
Spouses preparing for divorce may need to review any existing prenuptial agreement to determine what may happen with specific assets. They may only have minor details to negotiate after applying the terms they already set for property division. Prenuptial agreements can make it easier for people to divorce amicably and can help make aspects of the property division process predictable.