Finding love isn’t easy, especially if you have been hurt before. Getting married a second or third time comes with a lot of questions, especially if you have a lot of premarital assets you want to protect.
One of the most common options for divorce-proofing your assets prior to marriage includes signing a prenuptial agreement. Prenups have a lot of benefits:
- They can ensure that your children from a previous marriage are taken care of, no matter what happens to you.
- They can help protect your assets and shield you from debts if the marriage takes place quickly.
- They can ensure a certain level of privacy if you and your new spouse divorce.
However, signing a prenuptial agreement in Tennessee requires you to disclose all of your assets for the agreement. This is the only way for the prenuptial agreement to be valid; otherwise, it can be declared null and void, and your wealth will be subject to Tennessee’s laws regarding marital property and asset division.
Trusting someone new in your life takes time. Even though prenuptial agreements are popular, they might not be the best option for you at this time in your life. But there is another choice if you don’t want a prenup: the irrevocable trust.
Irrevocable trusts are part of your estate plan. The trust can be created for the benefit of any children you have or anyone you wish to name as the beneficiary. The benefit of an irrevocable trust is that it protects the assets from creditors and bankruptcy because those assets aren’t owned by you anymore: the “trust” owns the assets. Those assets won’t even been counted as part of your estate’s overall worth, so there could be tax benefits as well.
The drawback, of course, is that an irrevocable trust cannot be revoked, which means once it’s created, it’s done. You cannot change your mind and take your assets back.
Sign a prenuptial agreement after creating an irrevocable trust may be easier
Now that you have created an irrevocable trust, signing a prenuptial agreement might not feel as onerous to you. The assets are owned by the trust, which does not have to be listed on the prenuptial agreement.
Do you have questions about protecting your assets before getting married a second or third time? Would you rather keep some of your premarital assets private? The compassionate family law attorneys at the Law Offices of Adrian H. Altshuler & Associates understands that you want to protect your assets at all costs after being burned in the past. Give our office a call at 615-977-9370 or complete our contact form to schedule an appointment. With offices in Columbia, Brentwood, and Franklin, we provide legal services to families throughout Tennessee.