Why Consider a Prenuptial Agreement Before Marriage
Some people consider a prenuptial agreement unromantic â€” but there’s nothing romantic about being financially distressed after a divorce or a marriage breakup because you don’t have this type of agreement in place. The sad reality is that not all relationships survive. Even the strongest sometimes succumb to time, disagreements or other factors. A prenuptial agreement protects you and your family in case something goes wrong.
There are several excellent reasons why youâ€™ll want a prenuptial agreement before marriage:
1) It starts your marriage off with trust.
Trusting someone enough to discuss difficult financial matters is very important in a relationship. If you canâ€™t trust your future spouse enough to discuss these difficult topics, how will you discuss other difficult problems during the relationship?
2) It lets you discuss finances when things are good.
The time before a wedding is usually a time of celebration and happiness. Itâ€™s also a good time to calmly and rationally discuss potential financial issues. When everyone is upset and angry, mistakes can happen more easily. You donâ€™t want to be discussing financial topics when a relationship is shaky, and there is resentment involved.
3) It protects your future together.
If one of you becomes successful in your career or decides to stay home and take care of the children, a prenuptial agreement protects both parties. If you work hard during the relationship, a prenuptial agreement protects you and any assets you bring to the marriage so you can survive financially after the marriage if it were to end. If you decide to stay home to take care of children, a prenup ensures you will still be financially supported if the marriage does not survive, and you need to get back into the workforce.
4) It protects your family.
If you have children or other dependent relatives, a prenuptial agreement ensures they have the financial resources they deserve.
5) It takes care of a situation in which two of you are in different financial places.
Love can conquer all, but if two people getting married have very different financial situations, a prenup agreement keeps things fair. If you have larger assets, own a business or have huge debts, an agreement helps protect both spouses. It makes sure that someone doesnâ€™t end up paying a debt that is not theirs or doesnâ€™t end up paying excessive amounts of alimony.
6) It gives you peace of mind.
With a prenuptial agreement, you know that if something happens to you or the relationship, your financial obligations will be met, and your estate will be handled the way you want. It can also help assure you that your spouse is marrying you for love and not for assets or money.
7) A prenuptial agreement lets you learn more about your future spouse.
How will you handle money and talk about estate planning? Sitting down with an attorney to discuss this can give you information about your future partner and his or her financial situation. It can lead to important discussions before you walk down the aisle.
Prenuptial agreements are not just for celebrities and the very rich. They can help couples from all walks of life set up their combined finances in a way that makes sense and protects both parties.