When you’re planning a wedding, the last thing on your mind is the possibility of your relationship ending. However, as romantic as the promise of “’til death do us part” sounds, the practical implications of marriage extend beyond love and companionship. Just as you wouldn’t skip insurance for your home or car, you should not skip putting a prenuptial agreement in place to protect your future. Prenuptial agreements, or “prenups,” often get a bad rap, but in reality, they’re a smart planning tool for any couple, regardless of wealth or assets.
What is a Prenup, Anyway?
A prenuptial agreement is a legal contract entered into by a couple before marriage. It outlines how assets and debts will be divided if the marriage ends in divorce, and it can also address issues like spousal support. While it might seem unromantic, a prenup is essentially a blueprint for fair dealing and clarity during an emotionally charged time.
Why Consider a Prenup?
- Clarity and Communication: Talking about finances can be uncomfortable, but it’s essential for a healthy marriage. Creating a prenup encourages open communication about money, debts, and financial expectations. It’s a chance for both partners to lay everything on the table, which can strengthen your relationship.
- Define Marital vs. Separate Property: If you or your partner have significant assets—like a home, retirement savings, or a business—a prenup can protect these in the event of a divorce. This is particularly important for couples where one or both partners are entering the marriage with substantial assets or debt. A prenup is also a useful way of protecting inheritances in case of a divorce. Many inheritances carry massive sentimental significance for the heirs, or even the family as a whole: family property, heirloom jewelry or artwork, etc. A well-crafted prenuptial agreement can ensure that such inherited property remains separate from the marital property, preventing bad outcomes where the other spouse gets it or forces its sale during a divorce.
- Safeguard the Interests of Children: If you have children from a previous relationship, a prenup can ensure that certain assets are preserved for them. It can also outline the treatment of those children in future estate planning. You cannot, however, negotiate future child support obligations.
- Protect Business Interests: If one party has an ownership interest in a business, a prenup is invaluable in ensuring that the business is protected from any future divorce proceedings. This can be especially important to business partners, either in the present or the future. A prenup can also be written to ensure that any business one party begins during the marriage remains in their hands, especially in a situation where the other spouse does not materially commit to the business.
- Manage Debt Responsibilities: Entering marriage with student loans, business debts, or other liabilities? A prenup can ensure one spouse isn’t saddled with the other’s debt if the marriage ends.
- Clarity on Financial Rights and Expectations: A prenup isn’t just about planning for divorce; it’s about defining financial responsibilities during the marriage, like contributions to household expenses or savings. Are expenses divided evenly? Are they divided according to salary? Are they handled jointly? Is income treated jointly or kept separate? How will taxes be filed and returns handled? This clarity can lead to fewer arguments over money, one of marriage’s leading stress inducers.
- Protect Against Life’s Uncertainties: Life is unpredictable, and personal circumstances change. Whether it’s unexpected career shifts, personal transformations, or fluctuations in wealth, a prenup can provide a financial roadmap for these changes, offering both partners peace of mind.
- Avoid Costly Legal Battles: No one wants to think about possible bad future outcomes, especially as a marriage is approaching. However, that is my job: to see all possible paths ahead and help you plan for them so they impact you in the most favorable way possible. The average divorce costs $11,300…PER SPOUSE!! Deciding most important issues before the marriage begins could save you many months’ worth of salary in the case that the marriage ends in divorce, as almost half do.
Addressing Common Concerns
– “Isn’t it unromantic?” While it might not be the most romantic gesture, a prenup is a practical one. It’s about planning for the future and ensuring that both parties are protected. Many couples find that the process actually brings them closer by fostering honest conversations about their goals and values.
– “We don’t have much to protect.” Even if you don’t have significant assets now, that could change in the future. A prenup can be tailored to your specific situation and can evolve with you as your financial circumstances change.
– “Won’t it create mistrust?” On the contrary, many couples find that drafting a prenup fosters trust. It shows that both parties are willing to have tough conversations and are committed to being fair to each other, no matter what happens.
Conclusion: A Modern Tool for Modern Marriages
Prenuptial agreements are no longer just for the rich and famous. They’re a practical tool for any couple who wants to enter marriage with clear, shared financial expectations. It’s not about planning for divorce; it’s about building a solid foundation for your future together. A well-crafted prenup can give both partners peace of mind, allowing them to focus on building a life together with confidence.
A good marriage is a partnership. The best time to decide how you are going to handle the breakup of that partnership, to traverse one of the most difficult times in your life, is not in the middle of that difficulty. The best time to decide the terms of the end of your relationship is not when you are both angry and hurt; that rarely ends well for anyone. And, as mentioned above, it costs a LOT of money. The old maxim is that a failure to plan is a plan for failure. It is far better to have a plan that is never needed than to not have one when it could have been very valuable to you.
At Vita Bona Legal Services, we believe strongly that prenuptial agreements are an indispensable part of estate and relationship planning. If you would like to discuss a prenup or any other estate planning or business matter, schedule a complimentary call here: https://calendly.com/vitabona/initial-assessment.
This article is a service of Vita Bona Legal Services. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.
