A prenuptial agreement is an agreement made between the two parties prior to marriage. A prenuptial agreement lays out how money and other property that belongs separately to the spouses-to-be will be divided should the couple divorce in the future. Many will complain that discussing a prenuptial agreement is not romantic. While it may not be a romantic discussion to talk about a prenuptial agreement, it is a smart discussion to have if one or both parties are entering into a marriage with significant pre-marital assets. This is of particular importance when the assets owned by one party are a family business. With the reality that statistically, many marriages will end in divorce, a prenuptial agreement is a smart investment in your future.
Marriage is not just the union of a couple romantically. Marriage is also the joining together of finances. Marriage is a legal contract and has consequences for the spouses-to-be entering into it. A prenuptial agreement is simply a recognition that the union of a couple involves more than just emotion. A prenuptial agreement, as well as the discussions that ensue, can help the financial future of the couple. These discussions should include how the couple wants to invest their money, what financial goals they want to meet, such as whether they want to buy a home, invest in education, or save up for having children. Even if a couple does not need a prenuptial agreement, these are important discussions for all spouses-to-be to have. Many religions require that a couple have pre-marital counseling before they tie the knot. Family law attorneys recommend that the couple have financial and legal discussions as well. Often, the end result of these conversations is a prenuptial agreement.
Prenuptial agreements are not simply for the wealthy. Any party to the marriage that has something he or she owned prior to the couple coming together should consider a prenuptial agreement. For example, any spouse coming in the marriage that has assets, such as a home, stock or retirement funds or owns a business should consider a prenuptial agreement. Additionally, any spouse coming into the marriage who owns all or part of a business has children from a previous marriage or may receive an inheritance should also consider a prenuptial agreement. Additionally, those that may be facing unique situations, such as future care for elderly parents should consider the prenuptial agreement. Others that should consider a prenuptial agreement are anyone pursuing a degree in a lucrative profession like law or medicine or any spouse-to-be that expects to see a big increase in income from a business.
Prenuptial agreements are a smart investment for a couple. The prenuptial agreement allows a spouse-to-be to have peace of mind that their investments or family home they owned prior to entering the marriage are protected. While no one wants to have a discussion about finances while planning for their wedding, discussing such issues can save a lot of heartaches later on. Be sure to see a family law attorney help you draft a prenuptial agreement.