When you think of people considering entering a prenuptial agreement, what kind of couples come to mind? It’s probably someone super wealthy that is the heir to a fortune. After all, why would anyone else need to think about signing an agreement before marrying their loved one?
The truth is, however, that anyone can choose to have a prenuptial agreement in place before they get married. In many circumstances, it actually makes a lot of sense. Whether you have significant assets that you’ve accrued outside of marriage or are simply trying to protect yourself in the event of a divorce, here are some reasons why people have a prenup:
They are wealthy or anticipate great wealth
Yes, prenuptial agreements are a good idea where one, or both, parties to a marriage have significant wealth. It doesn’t mean you don’t love or trust your partner if you want to protect your rights to your assets.
A prenuptial agreement can help to make sure anything you have of value such as a car, artwork, and jewelry is kept in the family in the event of a divorce.
Their future spouse has a lot of debt
Conversely to the above, you may wish to protect yourself if you know that your future spouse has a lot of debt, or is going to accrue a lot of debt during the marriage. This may be a result of a business venture, property purchase, or education costs.
One party has children from a previous relationship
In the event of a divorce where one party, or both, have children from a previous relationship, a prenup can account for this. The agreement can be written to include a clause that denotes which assets should be protected and/or allocated for children in the event of a divorce.
Prenuptial agreements can be valuable to any couple looking to get married. As entering into one has legal consequences for both parties in the event of a divorce, it’s vital to seek some legal help to guide you through the process.