Getting married can be an exciting and romantic experience. However, it is also a legal process that creates unique practical challenges for the spouses. Married couples share their homes and their income. They may have responsibility for one another’s debt.
The way that they intertwine their lives can make it very difficult to go their separate ways if either spouse files for divorce in the future. Couples in a variety of different scenarios could potentially benefit from negotiating a prenuptial agreement.
While they were once relatively rare, prenuptial agreements have become relatively popular among younger couples preparing for marriage. The following are some of the circumstances that particularly warrant negotiating the contract prior to starting a marital relationship.
High-value assets that belong to one spouse
Those preparing to marry while already in possession of valuable resources often need to be deliberate in their attempts to protect themselves. Prenuptial agreements allow people to designate certain assets as their separate property. If one spouse already has valuable property, they can minimize the risk of those assets being vulnerable if they should divorce. Particularly if someone has a business, house or other asset that may require marital income to maintain, establishing that the asset is separate in the event of a divorce can be a very smart move.
Concerns about the impact of starting a family
Many married couples intend to have children together. Often, one spouse may make a sacrifice by giving up their career or at least focusing more on parenting responsibilities while the children are young. A prenuptial agreement helps protect one’s spouse from financial hardship if they sacrifice their income and earning potential for the sake of the family unit. The agreement can discuss not just property division but also specific terms for financial support if the couple divorces in the future.
Starting a blended family
Those who already have children before they marry also have unique challenges they may need to address. They may need to protect certain resources as their separate property so that their children can inherit those assets later. Particularly if prior relationships ended in divorce, those starting blended families may see the value of limiting the conflict if this new marriage doesn’t last for the rest of their lives.
Prenuptial agreements help to clarify expectations for a marriage and can protect people financially if they make sacrifices for the family or have resources that could be vulnerable. Sitting down to discuss a prenuptial agreement can be a smart move for those who want to marry without putting their finances at risk unnecessarily. A prenuptial agreement can give people the confidence they need to feel comfortable making a permanent commitment to a partner.