Five Reasons Why Prenuptial Agreements Are Important

Briefly defined, a prenuptial agreement is a contract entered into by engaged couples before marrying. It outlines how assets and properties will be managed and distributed after marriage.

More often than not, the underlying benefits of prenuptial agreements are overlooked and ignored. This is because of the settlement’s seemingly direct association of marriage and monetary gains. Since it cannot be denied that it emphasizes on financial management, prenuptial agreements are misunderstood mainly because it tends to disregard the idea of “romance” as the primary reason behind marriage. In addition, prenuptial agreements are stereotyped as something that is exclusive to the rich and the famous.

Nevertheless, setting aside all of marriage’s romantic undertones, prenuptial agreements offer long-term effects that lovealone cannot provide.

Asset protection

Asset management and distribution becomes complicated right after marriage. The thin line that separates conjugal properties from personal assets blurs. Under this context, it is not only the ownership that is at stake, but also the power and authority to utilize them. Prenuptial agreements set clear-cut measures that distinguish the individual rights of married couples in governing their assets that cannot be addressed by plain socio-cultural norms.

Preservation of children’s rights

Children from previous marriages have the right to their parents’ properties that can be protected by prenups. No, this is not about casting a cloud of doubt to the other spouse’s integrity. Children from previous marriages, especially minors are still under the responsibility of their parents. This is a reality that should be addressed and confronted. The Philippines is now more open and lenient towards annulment and such cases cannot be avoided. Sure, it is true that parents can draft wills later on, but the major issue in here is protecting children during unexpected deaths or adverse circumstances.

Spouse protection

In cases of sudden deaths, a prenuptial agreement protects spouses who have plans of remarrying. Properties acquired from previous marriages can be salvaged from possible opportunists.

Debt shield

Marriages are similar to business partnerships. In business, when one speaks of partnership as a type of ownership, this means that ordinarily, the involved individuals are responsible for everything that happens in the business, thus exposing them to unlimited liabilities. This is also true for marriages. Personal debts are not the spouse’s responsibility. Therefore, similar to businesses where the so-called “unlimited liability” can be avoided through the limited partnership set-u; the prenuptial agreement produces the same effects. This should not however, be viewed as something offensive. Debts incurred prior to the marriage should not be passed on to the husband or wife to maintain fairness and equality.

Cost reduction

As mentioned, the Philippines is now more open to annulment. Prenuptial agreements facilitate faster court proceedings since the grounds for property distribution has been already set. This clearly allows the couple to save more time and reduce legal costs.