How Do Prenuptial Contracts Address Wealth Inequalities?

Prenuptial contracts can be used for a variety of reasons. If one partner has much more money than another, they could choose to address this with a prenuptial contract. Here are a few things to consider on this matter.

Keep Separate

One of the most common strategies with prenuptial contracts is to keep everything separate. The spouse that has the most money can specify that if there is a divorce, the other person is not going to get any of the money that was earned prior to the marriage. By doing this, they will be able to make sure that the person is marrying them for love and not to get money upon a divorce.

Alimony

If one of the spouses has a much higher income than the other, they could also choose to use a prenuptial contract. This way, they will be able to limit the amount of alimony that would be paid in the event of a divorce.

Combine

With a prenuptial contract, you could also choose to address this issue by combining all of the assets. This way, you are not going to withhold anything from your spouse. If you get a divorce, they would then be entitled to an equal share.

blog comments powered by Disqus