Prenuptial Agreements (they are similar to life insurance policies)
A prenuptial agreement is very similar to a life insurance policy in that an individual will obtain such an agreement hoping it never has to be utilized. A prenup generally states in case you and your spouse ever decide to part ways that you and your spouse would each leave with the assets you owned when you entered into the marriage, save and except for any gifts given to each other. This type of agreement is specifically useful when a husband and wife have children from a previous marriage whom they wish to leave assets as such assets would have a clear label of being separate property. This helps reduce arguments and lesson costs in the distribution of assets. If you would like to receive more information regarding this issue, please feel free to contact my office for a free consultation regarding the same.