Wednesday, October 30, 2013

"Holla We Want Prenup", even if you never get a divorce.

Kayne West and Kim Kardashian are reportedly preparing a prenup before their upcoming marriage.

Most outlets are emphasizing the use of prenups in protecting assets in the event of a divorce. Besides the obvious jokes about the longevity of Hollywood marriages, prenups (or more properly called, ante nuptial - "before marriage" agreement) are useful for estate planning. Your will generally can allocate assets how you wish, but spouses have a right in most states, including Minnesota to receive a minimum portion of the estate. The only way to guarantee that the surviving spouse will not invoke that right, is to have a prenup that waives the right. Prenups, particularly if there are family business assets, family farmland or other significant family assets, can keep the asset from being distributed against your wishes. You may never get a divorce, but everybody dies.