Prenuptial agreements have gained popularity in recent years, especially among younger couples. As you plan your wedding, you might consider whether a prenuptial agreement is beneficial for your relationship. This practical, prudent document can help to set expectations and provide you both with peace of mind.
There are several reasons why many couples sign a prenuptial agreement.
1. Asset protection
Prenuptial agreements provide an avenue to safeguard individual assets both during marriage and in the event of divorce. Your prenup can define which assets remain separate property, allowing you to protect an inheritance, business or other resource from division in the event of a divorce.
2. Responsibility establishment
While most people focus on asset protection with a prenuptial agreement, it actually offers far more benefits. You can use the document to define the financial responsibilities for each of you during the marriage. This includes expectations for handling debts, managing joint finances and contributing to shared expenses. This helps reduce the risk of misunderstandings and disagreements about money.
3. Financial security
Prenuptial agreements can offer a sense of financial security for both partners in case of divorce. Include provisions for potential spousal support to ensure that neither party is left vulnerable, especially if one spouse will stay home with the children.
4. Reduced conflict
In the event of a divorce, prenuptial agreements provide a framework for the settlement agreement. This reduces the conflict associated with divorce, which can not only ease stress but also save time and money.
Nearly 40% of millennials grew up without both parents in the household. As a result, many couples in that generation approach marriage with more pragmatic opinions and see the value of prenuptial agreements. Consider these benefits as you approach the conversation with your significant other.