Prenuptial Agreements: Planning for Your Future Together
Getting married is exciting and sometimes it feels unromantic to be prepared for the future. Nevertheless, it's smart to consider a practical matter of a prenuptial agreement (prenup). Here's what you need to know:
What is a prenup? A prenup is a legal contract created before marriage that outlines how finances and assets will be handled in case of divorce or death. If you’re already married, you will need to consider a postnuptial agreement (postnup) which have a few additional requirements.
Why consider a prenup? Prenups can be beneficial for various reasons:
Protect separate property: Safeguard assets you owned before marriage (like an inheritance or a business).
Clarify financial expectations: Openly discuss how you'll handle income, debts, and future earnings/inheritances.
Minimize future conflict: Reduce potential disagreements about finances during a difficult time like a possible divorce or legal separation. I
What can't a prenup cover? Prenuptial agreements can't dictate child custody or child support arrangements (those are determined by the court in case of divorce, with the child's best interests as the top priority).
Key points to remember:
Talk openly: Discussing a prenup shouldn't be seen as a sign of mistrust; it's about open communication and financial planning for your future together.
Seek legal guidance: Both partners should consult with separate attorneys to ensure the prenup is fair and legally sound.
Not just for the wealthy: Prenuptial agreements aren't just for high-net-worth couples. Everyone can benefit from the clarity and security they provide.
By considering a prenup and having open conversations, you can lay a strong foundation for your married life, focusing on love and building a promising future together.
