There are many discussions around PreNuptial Agreements and for a long time the rumor was these were just for the super rich, it was something celebrities did and there was a negative connotation around them.
A prenuptial agreement is a legal document made by a couple before they get married that addresses, among other things, how they would like their personal property distributed throughout their marriage and if they ever get a divorce how the assets will be divided. Although perhaps an unromantic notion during the bloom of engagement it is perhaps a practical way to look at your life ahead. In 2003, the Harvard Gazette published a look at the practice stating the majority of engaged people feared discussing them with their partner. It was argued that if you wanted to get a prenuptial agreement, you might as well not get married.
Flash forward two decades, and prenuptial agreements are commonplace. A survey published by the American Academy of Matrimonial Lawyers revealed that the amount of couples getting prenups had increased more than five hundred percent over the last twenty years. Many couples getting married today are older and own more than in previous generations. This means they have more to protect, for both themselves and their partners.
The most dangerous lie about getting a prenuptial agreement is that it is a negative process. It is actually a way for two people in love to start to have the conversation about finances and how they want their life together to work. Here are our 5 reasons why you should always make a prenup before getting married:
1. Figure Out Property Divisions. This primary purpose allows you to decide if you and your spouse will share ownership of things like your home and your vehicle. This can also include financial accounts. Even if you owned something by yourself before you got married, your spouse will have a legal right to half of it unless you specify otherwise. This is why getting a prenup is especially important to business owners – your spouse could take your shares of your own business in a divorce.
2. Protect Each Other From Debt. A valiant option in making a prenup is shielding your spouse from taking on your personal debts. With many people under forty burdened with gigantic student loan debt, this allows you to protect your spouse from inheriting half of your debt. This is important for cases where one or both of the spouses are in debt, or plan to utilize loans in the future.
3. You Want to Protect Your Investments. If you have made investments into companies or projects in the past, you can specify in a prenup that you want those to stay wholly yours. This affects more than just you and your plans – any work you’ve invested in could be negatively impacted by losing shares in a divorce.
4. Protect Your Family’s Future. Prenuptial agreements can be utilized to financially protect any children you may have in the future. You can also dictate protections if you expect one parent to stay at home and raise the children full time. This applies to more than just human children – you can also specify who will take care of any pets in the event of a divorce!
5. Start the Conversation. One of the most beneficial elements of making a prenuptial agreement is starting up some conversations. Couples madly in love will normally not even discuss finances with each other at all before getting married, and then find it to be a gigantic part of their daily lives that they were ill prepared for. If one spouse makes significantly more than the other, talk about what that means and how you plan to handle that in the future!
Ask For Help! Prenuptial agreements are one of the best things that any couple getting married can decide to do. They should be properly planned and not sprung on your partner at the last moment. If you are ready to start protecting your future, contact Whitson Law today. Let’s get in touch!
