Today, more couples are getting married later in life, which means they have acquired their fair share of assets and financial resources prior to the union taking place. While traditionally a prenuptial agreement was used for those with excessive assets, a person does not have to be a millionaire to use this layer of protection.
The media has portrayed prenuptial agreements as glamorous, but they are hardly such. These agreements rarely turn out like they do for movie stars – equaling million-dollar payouts for cheating or gaining weight. A solid prenuptial agreement is one that can actually be enforced by the courts. They may stipulate how much alimony a spouse will receive, which spouse will receive the family house and clarify financial assets that are acquired pre-marriage. Also, if one spouse has a significant amount of debt, a prenuptial agreement will clarify how that debt will be handled if the relationship ends.
Prenuptial agreements do not have to remove the romance in a relationship – instead, couples should look at them as a financial planning tool for the unknown. Signing or drafting an agreement does not automatically mean a couple expects the marriage to fail, but it will protect both parties in the event something does go wrong in the future.
Situations That Warrant a Prenuptial Agreement
There are certain situations where a couple should consider a prenuptial agreement. These include:
- One future spouse owns a business. A business owner should have a prenuptial agreement that protects company assets from their spouse – especially if there is a significant increase in the company’s value during the marriage. Also, the prenuptial agreement can address any intellectual property rights of the business.
- One future spouse has a specific asset they need to protect. Prenuptial agreements may be used when one spouse receives a big inheritance and wants to protect the funds in case of a divorce.
- Children from a previous marriage. If one party has children from a previous relationship or marriage, a prenuptial agreement offers an additional layer of protection (in addition to the estate planning documents) to ensure there is no confusion about which assets go to which children.
- One future spouse has excessive debt. With the growing averages of credit card debt and student loans in the United States, it is not unusual for one of the parties to have excessive debts. Bringing those debts into the marriage can create complications later on. A prenuptial agreement will clearly state which party is responsible for those debts.
- One future spouse is giving up something for the marriage or their partner. Prenuptial agreements do not only safeguard financial assets; they can protect the interests of one of the spouses who gives up something for the relationship, such as a job to relocate or quitting a career to stay home with children. A prenuptial agreement can ensure that sacrificing spouse receives alimony or some form of financial compensation for their sacrifice.
Considering a Prenuptial Agreement? Meet with Romanowski Law Offices Today
If you are considering a prenuptial agreement for your marriage, speak to the attorneys at Romanowski Law Offices today. We can help you explore your options and draft a prenuptial agreement that benefits both parties. Call us for a consultation at 732-603-8585 or fill out an online contact form.