When entering into a marriage, many couples choose to create a prenuptial agreement. This legal document outlines the division of assets in case of divorce.
Without a prenup, however, couples may rely on default state laws to determine asset division. If you wish to control the division of your marital assets without having a prenup in place, there are a few alternatives to consider.
Negotiate a settlement
Couples without a prenuptial agreement can negotiate a settlement during the divorce proceedings. This negotiation process involves discussing how to divide property, debts and other assets. While it may require compromise and communication, negotiating a settlement can provide both parties with some control over the outcome.
Mediation
Mediation involves working with a neutral third party to facilitate discussions and negotiations. In mediation, couples can address their concerns and work toward a mutually acceptable agreement. This collaborative approach often allows for more flexibility and can help minimize conflict compared to litigation.
Litigation
When couples cannot reach an agreement through negotiation or mediation, the final option is litigation. In the courtroom setting, a judge makes decisions regarding asset division based on applicable state laws. Litigation can be costly, time-consuming and emotionally draining. However, it may be necessary if the couple cannot resolve their differences through other means.
Postnuptial agreement
While similar to a prenuptial agreement, you and your spouse can create a postnuptial agreement after marriage. Couples without a prenup can still establish a postnuptial agreement to outline asset division in the event of divorce. Like prenuptial agreements, postnuptial agreements can address various financial matters and provide clarity and protection for both parties.
Statistics suggest that only 1 in 5 married couples have a prenuptial agreement in place. If you wish to protect certain assets in your divorce despite not having a prenup, you can still achieve your goals by pursuing viable alternatives.
