Even though many people have a negative point of view on a prenuptial agreement, it is gaining popularity among couples these days. People see the agreement as a means to protect the money of the wealthier partner and excludes the less wealthy ones. But the agreement is mutually agreed upon and should not be one-sided.
To draft a prenup, both spouses should have separate family law attorneys who can discuss with them the relevant information about the agreement. Having separate lawyers makes the agreement enforceable by the court.
Many millennials opt for a prenup since they marry later in life, which means they have more assets to protect. They also opt to make sure they protect future assets they acquire. Additionally, they do not believe that prenups can lead to divorces. Instead, they consider the agreement as one of the ways to strengthen a marriage.
Here are some things that make prenups important for couples thinking about tying the knot.
Opens Financial Discussions
A prenup is a good way for couples to openly discuss finances. It also allows them to talk about their financial goals in the future. During the discussion, the couple can open up and check the assets they own as a couple. It also allows them to see their debts as a couple.
The discussion allows both parties to see their individual views when it comes to financial matters. If they have different views about finances, they can find the middle ground before they tie the knot. The discussion also allows the couple to start their married life on a positive note since they have an idea of how they can move forward with their finances.
Peace of Mind
When it comes to finances, it is one of the flashpoints between couples. This is particularly true if the couple did not discuss it before they get married. A prenup does not only protect the assets of the wealthier partner. It also gives the less wealthy partner peace of mind due to the knowledge of a financial cushion available to them in case the marriage ends.
A prenup reduces the anxiety of the partner who does not contribute financially to the relationship. It is a financial safety net for the less wealthy partner to allow them to maintain a certain lifestyle in case things do not work out in the end.
Protects Separate Property
With many people marrying later these days, they have a lot of time to acquire assets and build debt. Many couples prefer protecting the assets they acquired before they married. These assets are called separate property.
Separate property is anything a person owned before registering a domestic partnership or getting married. Even as they protect their separate property through a prenup, they also share any assets they accumulate while they are together. It also allows people to protect items that are valuable to them, such as a family heirloom.
Aside from tangible properties, a prenup also protects lesser tangible properties, such as intellectual property or an interest in a business. Since people inherit these types of wealth, they must assess if there’s a need to protect them in case the marriage does not work out.
In addition to assets, prenups also protect both parties from debt one of them incurred before they got married. It ensures the partner who did not incur the debt does not wind up being responsible for it in case the marriage ends.
Control Over Division of Assets
A prenup allows the couple to control what happens next in case they go their separate ways. But since prenups differ from one state to another, it’s best for the couple to discuss it with an expert familiar with the state’s law. In any case, the prenup allows them to decide what to do instead of the court when they get a divorce.
It ensures everything goes smoothly after a divorce. But they should understand that the co-mingling of assets that is not consistent with the agreement can nullify the prenup. In this situation, the courts cannot distinguish the individual holdings of each partner with precision.
So, the couple should make sure to follow everything stated on the prenup to avoid nullifying it. This is particularly true if the agreement lays down the specific rules on the assets each partner has and should protect. In this situation, they have to live up to the prenup’s terms and avoid anything that can cause disputes in the agreement.
Even though some people consider a prenuptial agreement as a romance killer, it offers practical benefits for both parties and can even strengthen their relationship after they tie the knot.