Prenuptial agreements are commonplace these days. However, it feels true that they suffered a poor reputation for many years as a tool of greedy spouses seeking to keep all their assets to themselves. Unfortunately, when couples marry, they aren’t planning to get a divorce.
What is a Prenuptial Agreement?
A prenuptial agreement is a contract couples sign before entering a legal marriage. The purpose of a prenuptial agreement is to provide clarification. It provides details outlining how finances should be managed in a marriage if the union ends in divorce. A prenuptial agreement should never be one-sided. When a prenuptial agreement is unfair, it’s likely to be invalidated should it be presented in divorce court, so it’s in the best interest of all parties to create documents that are fair.
In addition to being fair, a prenuptial agreement will be invalidated if it’s not:
· have both parties sign voluntarily with the presence of their lawyers
· not be completely one-sided as of the date it’s signed
· have complete honesty from both parties about their assets and debts
5 Reasons a Prenuptial Agreement May Be Right for You
There are many situations where an individual preparing to marry should strongly consider protecting their assets. Almost half of all marriages end in divorce, so even with the best intentions, couples have a 50/50 chance of success.
There are certain situations where a prenuptial agreement should be standard:
· You Expect to Receive Heirloom or Inherited Property
· You Have a Family Business
· This Isn’t Your First Marriage
· One or Both Parties is a High-Income Earner
· You Have Children from a Previous Relationship
In addition to providing clarity on issues that impact marriage and divorce, a prenuptial agreement can also protect your interest and serve as a supporting document for your will and estate plan. While many people only see prenuptial agreements as a means of planning to fail, it can also be an insurance policy in the unfortunate event your marriage fails. No one wants to get a divorce, but relationships are unpredictable. Like insurance, no one gets auto insurance preparing to get into an accident. It’s in case something unfortunate happens. A prenuptial agreement essentially serves as an insurance policy for your marriage.
There are many conversations that couples find uncomfortable. Many couples never sit down and have a formal dialogue about finances and debt, and they allow life to figure itself out. While it’s obvious that having these difficult conversations now could help eliminate many misunderstandings and future problems. The conversation could just as likely create tension in a relationship.
Some couples struggle to move forward with a prenuptial agreement because they’re viewed as:
· Imply divorce is imminent
· Too complicated
So, couples considering a prenuptial agreement need to weigh the benefits and drawbacks and make the choice that best fits their situation. What’s most important is to not avoid the benefits of a prenuptial agreement based on misperceptions about what prenuptial agreements do and how they work.
Talk to an Attorney About the Reasons You Should Have a Prenuptial Agreement
A prenuptial agreement can be a powerful legal tool that protects both parties, even if you have modest assets. An attorney can help you draft a prenup that protects your interest and is far from your partner. It can be stressful and uncomfortable to have a conversation with your partner about a prenup, so if you need assistance putting together a plan to execute a prenuptial agreement, our dedicated attorneys are available for a consultation. Call today at (931) 361-4477 to schedule an appointment to discuss your case.