Most people assume prenuptial agreements as a safeguard for the wealthy. The truth is, anyone couple can hold one of these agreements. Do you really need one, though? Prenups have become increasingly popular over the past decade, but they still aren’t for everyone. Here’s when and why you should consider this binding document.
What is a Prenup for?
If you have personal assets, liabilities, property, or even children, then a prenuptial agreement can help you and your partner clearly define what happens to those things in the event of a divorce or death. It helps to clarify financial rights and responsibilities for both parties throughout their marriage, as well.
Prenups are also an excellent way to protect yourself from the debts of your spouse, how your property should pass down to children in the event of death and set clear rules for alimony. There are a number of things that prenups do not cover, however.
Obviously, nothing illegal can be a part of the agreement. Anything that falls under the umbrella of public policy is off limits. Custody rights, for instance, fall under child welfare in the public court. If you ask a divorce attorney, they’ll tell you to keep the agreement limited to finances.
Is a Prenup Right for You?
Even if you aren’t wealthy or don’t have many assets, you might still want to consider a prenuptial agreement. There’s nothing wrong with believing that you and your significant other will be together forever. However, that doesn’t make a prenup void or any less important.
First, this is an excellent way to bring up finances before getting married. It’s something many couples fail to do, leading to potential problems in the future. A prenup helps you have an honest discussion about your financial situation and better plan your lives together.
Second, it helps you set goals. After looking at where the two of you are financially, you can better define where you want to be in five or ten years. Finally, it protects you in the event that the relationship does fall apart.
No one wants to imagine their marriage ending, and it might not, but you have no idea what might happen as the years go on. A prenup protects your money and assets in the event of the worst, which works in the favor of both parties involved.
How to Discuss a Prenup
Bringing up this document is difficult. It isn’t romantic and might make your significant other question whether or not you are fully committed to this relationship. For some, a prenup is viewed as a lack of trust.
The truth is that a prenuptial agreement is beneficial for both of you financially. A domestic violence defense attorney points out that having this conversation before tying the knot can be incredibly revealing. You learn more about the person you’re considering marrying and might avoid years of struggling or fighting. When it comes down to it, you should consider a prenuptial agreement the moment you decide to get engaged.