When getting married, it is common for couples to consider signing a premarital agreement (prenup). For Hoosiers, a well-drafted prenup can provide peace of mind by setting clear expectations and reducing the likelihood of disputes if the marriage ends.
Here are several ways a premarital agreement will benefit you in the event of an Indiana divorce.
1. Simplifying property division
A premarital agreement outlines how property will be divided in case of divorce, reducing the need for lengthy and costly court proceedings. Indiana follows an equitable distribution approach, which can sometimes lead to unpredictable outcomes based on the court’s discretion. A premarital agreement allows couples to bypass this uncertainty by establishing their own terms for property division, providing clarity and avoiding the emotional and financial toll of a contested divorce.
2. Reducing alimony disputes
In Indiana, spousal maintenance (alimony) is not automatically awarded, but a premarital agreement can define whether one spouse will receive maintenance, how much and for how long. This can significantly reduce disputes during divorce proceedings, especially when one spouse earns less than the other.
3. Protecting separate assets
A premarital agreement can help safeguard any assets that either spouse brings into the marriage, helping ensure they remain classified as separate property in case of divorce. This is particularly important in Indiana, where, without such an agreement, all assets acquired during the marriage—regardless of who earned or purchased them—may be classified as marital property and subject to division.
4. Defining debt responsibility
If one spouse has significant debt, such as student loans or credit card debt, a premarital agreement can clearly define who is responsible for that debt after divorce. Indiana courts divide debts equitably, which doesn’t necessarily mean equally, and a premarital agreement can help prevent one party from being unfairly saddled with the other’s financial obligations.
Having a premarital agreement in place better ensures clarity and protection, but it’s essential to seek legal guidance to create an agreement tailored to your specific needs.