You should sign a prenuptial agreement (prenup) to protect your interests and those of your soon-to-be spouse. While it may not sound romantic to draft and sign a prenup, discussing your finances and setting reasonable expectations are both activities that can make your relationship stronger.
For Financial Independence
Signing a prenup can help you and your partner preserve a sense of independence and mitigate any concerns about finances. For example, you can use a prenup to take full responsibility for your student loans or any debt you acquired before getting married. Similarly, you can make sure that retirement accounts and the assets you have worked for are safe from any marital conflict.
According to Business Insider, prenups are on the rise because women have more independence than ever before. Just like many women keep their last names when getting married, women may want to keep some financial independence within their marriages. This kind of independence can be beneficial for both partners and create more security within the relationship.
As Insurance
You insure your car, your home, and your health. Consider a prenup as insurance for your relationship. By signing a prenup, you and your spouse are protecting each other from a nasty, drawn-out divorce. You are also insuring your assets from divorce and securing your future from worst-case scenarios.
For Your Business
If you own a business, you want to protect it. A prenup can help you do this. By designating your business as separate property in your prenup, you can help clarify any misunderstandings that may arise during a divorce. You can also protect important investments, intellectual property, and other assets.
Because Money Issues Are a Leading Cause of Divorce
Discussing a prenup forces couples to talk about money and have important conversations before marriage. During a prenup, you and your partner can communicate your financial goals and find out how marriage will affect those goals. You can also identify your partner’s attitude about money and uncover any debts or irresponsible spending habits.
Some people find that prenuptial agreements help them envision their marriages and financial future with more clarity.
When Should I Sign a Prenup?
Introduce the idea of a prenup soon after your engagement. Do not wait until the last minute, or your prenup may not be valid in court.
A prenup can be a good idea for any couple, but it is especially important when:
- You or your spouse has been married before
- You or your spouse has children
- One partner is wealthier
- One partner has more debt
- You or your spouse owns a business
- You or your spouse has an inheritance
- One partner plans to be a stay-at-home parent
What Happens if I Sign a Prenup?
Every couple is different, and every prenup is different. A prenuptial agreement can function however you want it to. Whether you want to protect your partner from student loans or make sure your partner can maintain their quality of life even if you split up, a prenup is a good idea for you.
If you and your partner want to prepare a prenup before getting married, the Law Office of Nicholas T. Exarhakis can help. Even if you’re not sure a prenup is right for you, we can discuss the process during a free phone consultation.
With more than 25 years of experience, Attorney Exarhakis can provide cost-effective legal services and help you create a prenup that fulfills all your goals.
To learn more about what our firm can do for you and your partner, please call us at (410) 593-0040 or contact us online today.