The last thing on your mind when newly engaged is divorce. Yet every year, close to half as many couples divorce as get married. Because of the potential for divorce, getting a prenuptial agreement is an important part of the marriage process.
A prenuptial agreement is a contract that outlines how your assets will be divided should you divorce. Without one, your assets will be divided based on what a family law judge deems is in accordance with state law.
If you are bringing a sizeable amount of money or property to your marriage, a prenup helps you to protect your interests in those assets. Some state laws may not provide equal safeguards. In addition, you can define in your prenup what is considered marital and what is considered separate property to ensure that each member of the marriage understands which property belongs to whom.
A prenuptial agreement can also help support your estate plan. This is particularly important if you are marrying for the second or third time and there are children or grandchildren from your prior marriage that have an interest in your estate. With a prenuptial agreement, you protect their inheritance should you and your new loved one ultimately part ways.
A prenuptial agreement doesn't always just protect the higher net worth individual. Sometimes, one spouse is the primary money earner in the marriage. If you know this prior to getting married, you can set up the prenuptial agreement so that the non-working spouse will have income if you get divorced.
Finally, a prenuptial agreement can make a future divorce, should it happen, much more affordable. There will be fewer attorney's fees, less chance of going to court and less time spent in mediation if you outline what you want to see happen prior to getting married.
If you decide to get a prenuptial agreement, obtain the help of an experienced attorney to make sure it is properly executed. In order to avoid the appearance of coercion, both parties should sign at least 30 days prior to your wedding. Both you and your fiancé(e) should have your own lawyer to help in the negotiating and drafting of the agreement. These two steps will decrease any chances of having the agreement declared invalid during divorce proceedings.
