Signing a prenuptial agreement just prior to marriage can be a solid measure of insurance for newlyweds should they decide to get divorced down the road. This legal agreement can help Denver couples determine how their assets and property will be split, including their home.
Although a prenuptial agreement is a valuable tool for married couples looking to dissolve their relationship, where does this leave unmarried couples who share a significant amount of property?
According to a survey conducted by a national real estate group, couples between the ages of 18 and 34 are increasingly making the decision to buy a home together before they exchange vows. This is part of a larger trend in which young people are moving forward with "major life events" at a young age, but wait to get married.
When a married couple with a mortgage decides to divorce, family law establishes a way to split the remaining debt. However, this legal framework doesn't exist for unmarried couples. For unmarried homeowners, this could present a major issue if they decide to go separate ways. No one wants to be unfairly burdened with the balance of a mortgage.
Long-term couples waiting to get married may want to consider a legal arrangement similar to a prenuptial agreement if they make a major financial decision together. This way, the couple can determine a way to fairly allocate their debt or assets without having to worry about a lengthy dispute.
Of course, family law issues of any kind are typically complicated. This is why it may be helpful to seek advice as necessary to determine what legal options are available to unmarried and soon-to-be married couples alike.
Source: Fox Business, "Millennials Doing Things Their Way: First Comes House, Then Wedding," Kate Rogers, April 17, 2013
Our firm has experience handling a wide variety of family law issues. To learn more about the topics discussed in this post, please visit our Denver prenuptial agreement page.