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Prenuptial agreement can help with addressing debt during divorce

Just as getting married is a major life event in Montana, getting divorced is a major life moment as well. Unfortunately, the latter is far less pleasant than the former. Before getting married, creating a prenuptial agreement can be a helpful way of protecting one's assets and tackling other important areas in the event that divorce is inevitable.

One area outside of assets that a prenuptial agreement can address is debt. Each spouse can list his or her debt when they get married so that they clearly understand what debts are their separate obligations if they end up getting divorced. Failure to specify which debt belongs to whom -- and who will pay it off -- in the prenuptial agreement means that the two spouses may end up being responsible for each other's debt when the collectors start calling.

Yet another important matter to address in a prenuptial agreement is future spending. One spouse may end up getting a gift for the other spouse during their marriage, and this is generally deemed marital property. However, for couples who would like such gifts to be considered separate property, they need to spell this out in their prenuptial agreements.

Unfortunately, not all couples who are going through divorce in Montana have prenuptial agreements in place for determining how their assets and debt will be handled, for example. However, they can still increase their changes of having amicable split-ups by choosing to complete divorce negotiation rather than going to trial. Through negotiation, they may be able to decide who gets the family house and who gets the retirement funds, for instance, without further court intrusion.

Source: brides.com, "The 6 Things You're Forgetting to Include in Your Prenup (From a Divorce Lawyer)", Jaimie Mackey, July 29, 2017

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