Why a Prenuptial Agreement IS Right for Your Marriage
A prenuptial agreement, sometimes referred to as an “antenuptial agreement” or “premarital agreement,” is an agreement between prospective spouses made in contemplation of marriage. Â The Agreement is entered into prior to marriage, but is not effective until marriage. Â If the marriage does not take place, then the Agreement is unenforceable.
The idea of entering into a prenuptial agreement may not ring romantic particularly as you exchange rings.Â Â However, at the risk of suggesting too much cynicism, the fact remains the divorce rate for U.S. couples is upwards of 50%.Â Â To add a more fitting perspective to the discussion, creating a prenuptial agreement may actually strengthen the marriage.Â Â Communicating about money matters is vital to the strength of any relationship and can support good communication throughout the marriage.Â Â Letâ€™s face it; marriage is as much a financial partnership as it is a romantic partnership.Â Â So, Â Why consider a prenuptial agreement?
Prenuptial Agreements: Â Who Needs Them?
- Previous Marriages Prenuptial agreements are most commonly used when one or both parties have been married previously and wish to protect the assets they bring into the marriage.Â Â This issue is particularly relevant if there are children from the previous marriage and the parent spouse seeks to provide for the rights of the children from the prior marriage.
- Business Owners Business survival depends on plans in place before an emergency strikes.A prenuptial agreement can protect both the business owner and the spouse from being obligated for business expenses and debts.Â Â Whatâ€™s more prenuptial provisions can guide the sale of the business from one spouse to the other as well as which spouse retains control of the business post-divorce.
- Debt While traditionally the prenuptial agreement protects the separate assets brought into the marriage, the agreement can and should address liability for debts incurred in connection with the ownership of separate property.
- Desire to Protect Family HeirloomsIf you have family heirlooms that you wish to keep in the family or expect to receive an inheritance during the marriage, you should consider a prenuptial agreement.