Prenuptial and postnuptial agreements (colloquially called "prenups" and "postnups") have received something of a bad rap. In the eyes of many people, prenups and postnups are a sign that a couple doesn't think their marriage will last.
Realistically, prenups and postnups can be an excellent way for married couples to ensure their partnership is equitable, and can actually help spouses protect each other financially. Today, we're going to be looking at why you might want a prenup.
Why You Should Consider a Prenup
You should consider getting a prenup or postnup if any of the following applies to your marriage:
- One spouse has more assets (or liabilities) than the other. If one spouse has a majority of the assets or liabilities (like debts) in the marriage, a prenup or postnup can help keep assets like businesses as separate property. Should you decide to divorce, the spouse with more assets or liabilities will get to keep a more equitable share of their property.
- One partner, or both, plans on making risky financial decisions. Prenups and postnups can also include stipulations for future financial decisions like opening a business or pouring money into an investment account. A prenup or postnup can help you and your partner protect one another if your investments go bad and one party ends up with a significant amount of debt or some other liability.
- A family is in the future. Dictating how you and your partner will divide assets such as pets or take care of arrangements like child custody and support in the future can make divorce much easier, should one occur. These processes are usually the most contentious parts of a divorce, so tackling them proactively can help smooth out the process and help prevent divorce altogether.
There's a reason more and more millennials are choosing to get prenups before they marry. For help pursuing a prenup that will keep your best interests secure, contact us onlineor via phone at (502) 812-1889.