Should You Get A Prenuptial Agreement?
When planning a wedding, the last thing most couples want to think about is what happens if the marriage ends. However, having open and honest conversations about finances can actually strengthen your relationship, and that’s where a prenuptial agreement, or “prenup,” comes in as a prenup lawyer can share.
A prenuptial agreement is a legally binding contract signed before marriage. It outlines how property, assets, debts, and other financial matters will be handled in the event of a divorce, separation, or even death. While prenups are sometimes viewed as unromantic or pessimistic, they are increasingly being recognized as practical tools for financial planning.
Why Consider A Prenup?
A prenup isn’t just for celebrities or the ultra-wealthy. In reality, it can be a smart move for many couples. Here are some common situations where a prenup might make sense:
- One Or Both Partners Have Significant Assets: If either person is entering the marriage with substantial savings, investments, or real estate, a prenup helps clarify what remains separate and what becomes marital property.
- There Are Children From A Previous Relationship: A prenup can help protect the financial interests of children from previous marriages or relationships, ensuring that certain assets are preserved for them.
- One Partner Owns A Business: Without a prenup, a business could become subject to division or shared ownership in the event of a divorce. This agreement can help shield a business from being split up or sold.
- Disparity In Income Or Future Earnings: If one spouse is likely to earn much more over time (e.g., due to a promising career or inheritance), a prenup can provide clarity on how future income and potential spousal support would be handled.
- Debt Protection: A prenup can define how existing or future debts will be managed, preventing one partner from being held responsible for the other’s financial obligations.
What Can A Prenup Cover?
According to our friends at Vayman & Teitelbaum, P.C., prenuptial agreements typically address:
- Division of property and other assets
- Spousal support (alimony)
- Responsibility for debts
- Inheritance rights
- Ownership of businesses or investments
However, there are some limitations. For instance, a prenup can’t dictate child custody or child support arrangements, as those are determined by the court based on the best interest of the child at the time of separation.
Is It Right For You?
A prenup isn’t a sign that you expect your marriage to fail; it’s a proactive way to protect each person’s interests and ensure transparency. In fact, discussing a prenup can open the door to important conversations about money, goals, and expectations, helping couples start their union with honesty and understanding.
To create a valid prenup, it’s essential that:
- Both parties fully disclose their assets and debts
- Each person has the opportunity to consult their own legal counsel.
- The agreement is voluntarily signed and not done under pressure
- The terms are fair and reasonable.
Whether you have a lot of assets or not, a prenuptial agreement can provide peace of mind and reduce potential conflict in the future. It’s not about planning for divorce, it’s about planning for your future, together, with clarity and mutual respect. If you are ready to discuss a prenup, contact a lawyer near you.