Marriage is a beautiful part of life, but sometimes, there are complicated and tough decisions to be made before saying "I do." One of these decisions is whether or not to sign a prenuptial agreement. While some see a prenup as a lack of faith in the relationship, others view it as a smart way to protect their assets and financial future.
Among Americans, many couples are getting prenups. About 40% of people between 18 and 34 who were married or engaged signed a prenup. Whatever your decision may be, it is important to be informed about what a prenup is, its benefits, and whether or not it is right for you and your spouse-to-be.
What Is a Prenup?
A prenuptial agreement is a contract between two partners that establishes their individual property and financial rights if they ever decide to divorce. Not only does a prenup help you divide assets with an objective mindset, but it can also protect your business, determine spousal support, and even specify bequests in your wills.
Despite its unpleasant connotations, investing in a prenup can prevent unnecessary conflicts and expenses down the road.
Who Should Get a Prenup?
When it comes to getting a prenup before getting married, there is no one-size-fits-all answer. As noted in a U.S. News article, while every couple would benefit from a prenuptial agreement, there are certain circumstances that make a prenup more crucial.
Situations Where Prenups Are Recommended
Dorik Goikhman, an attorney, mediator, and founder of Off the Record Mediation Services LLC suggests that couples with substantial assets would benefit from a prenup to protect their individual assets.
Likewise, couples who are involved in running small businesses should explore prenup options to avoid potential financial strain should the marriage end.
Other scenarios where a prenup may be needed include:
- Spouses who have children from prior relationships
- One or both spouses have a future inheritance
- Either spouse has significant debt prior to the relationship
- Couples who have specific desires should the marriage dissolve
Situations Where Prenups Are Less Critical
Although prenups may be less important for couples without significant assets, it's still a good idea to get one as they help define the goals and wishes of the parties involved. Ultimately, getting a prenup can be a smart move for any couple looking to ensure peace of mind in the event of a divorce or separation.
Benefits of a Prenup
Promote Honest Conversations About Money
Conversations about money are never easy, but they are an essential part of planning your future with your partner. When you open up about your finances, you're gaining insight into each other's aspirations. This knowledge allows you to get on the same page and enter your marriage as a unified front.
Other conversations about money include:
- Whether to keep your finances separate or start a joint bank account
- Discussing your respective debts
- Deciding if you want to buy a house together
- Your respective financial goals and expectations
These conversations aren't just about financial expectations; they are an opportunity to have meaningful conversations about your individual and collective future. Prenups accomplish the same goal of transparency and communication, giving you peace of mind before you walk down the aisle and are legally bound.
Before you make the lifelong commitment of marriage, consider having those difficult conversations about money for the sake of understanding your partner and being completely aligned.
Financial Stability for Spouses
Starting a life together can be one of the most exciting times in a couple's life. However, income disparity may be an aspect of certain marriages. For example, one spouse may come into the marriage with little income or take significant time away from their professional career to care for children, family members, etc.
This is where a prenuptial agreement can be a valuable tool to ensure that the less-earning spouse is financially protected. With a prenuptial agreement, the couple can include clauses that define how the wealthier partner will provide financial support in the event of a divorce. With a prenuptial agreement in place, a couple can focus on building a life together without the added stress of financial uncertainty.
Protect Your Property
A prenuptial agreement is a legal document that can protect your personal finances and assets. It can define which assets and finances are solely yours, known as your separate property.
This may include:
- Property you purchased before marriage
- Money in a personal bank account
- And more
Having a prenup can offer peace of mind as you enter into a marriage and can prevent potential conflicts in the future. If you're getting married, a prenup might be something to consider discussing with your partner.
Keep Heirlooms & Assets in Your Family
Marriage is a beautiful journey that many of us long for. However, in today's world, it is also important to think responsibly about your future, especially when it comes to your assets and investments. If you have family assets, like a business or rental properties, it is crucial to protect them in case of a possible divorce.
A prenuptial agreement can help to safeguard your interests and guarantee that these assets stay within your family. Whether you have children from a previous marriage or want to leave assets to your designated beneficiaries, a prenup can provide peace of mind, allowing you to know that your family's wealth is protected in the long run.
Create a Peaceful Divorce Process
Divorce can be a messy, stressful, and costly process. However, if you have a prenuptial agreement, it can significantly speed up the process, saving you time, money, and emotional turmoil.
By predetermining important issues such as property division and spousal support, you eliminate the need for extensive legal battles or negotiations. Additionally, a prenup can outline how potential disagreements or disputes between spouses will be settled, reducing the likelihood of contentious court battles. Ultimately, a prenuptial agreement is a wise investment in your future and peace of mind.
Contact Us for More Information
For many couples, discussing prenuptial agreements can be a difficult and uncomfortable conversation. However, at Jetton & Meredith, PLLC, our experienced prenup lawyers are here to help ease any concerns and create an agreement that works for you and your partner.
We understand that every situation is unique, and we take the time to listen to your needs and carefully review your finances to ensure that your interests are protected. Whether you're considering a prenuptial agreement as a safeguard for your future or simply want to explore your options, our team is here to guide you every step of the way.
Call (704) 931-5535 to get in touch with our team to learn more.