The topic of prenuptial agreements may stir up some heavy emotions. For many, prenups conjure images of families circling the newly engaged couple to protect their inheritance. However, more couples are drafting premarital contracts on their own, and not for the reasons you may think.
In fact, you and your spouse may have numerous ways in which such a contract could benefit you, strengthen your marriage and protect your assets. If you and your partner have a wedding in the future, it is best to discuss a prenuptial agreement as soon as possible so you have time to address all your questions and concerns.
Prenups are more common than ever
Millennials, those now in their 20s and 30s, are waiting longer to marry. As a result, they may bring into the marriage their own significant assets, a business venture or even children from a previous relationship. These are all factors that a prenuptial agreement can protect. Additionally, you may be among those who lived through your parents’ divorce. If you witnessed your parents struggling financially after asset division, you may understand the importance of creating a contingency plan, even if you hope you never have to use it.
Some situations that may increase the importance of having a prenuptial agreement include the following:
- You have considerably more assets, income or property than your spouse, or vice versa.
- You already have investments, or you expect to invest in the future, and want to keep those investments separate from marital property.
- You or your spouse intend to stop working once you have children, and you want to ensure that, in the event of a divorce, that partner will be compensated for sacrificing a career.
- You want to protect your assets from stepchildren or provide for your children from a previous relationship.
- You want to settle how you and your spouse will divide custody of any pets you may have.
While divorce is something a young couple does not like to consider, the cruel fact is that nearly half of all marriages end in divorce. During a divorce, the spouses may work out a division of assets together or they may allow the courts to decide based on Florida laws. With a prenuptial agreement in place, you will already have those decisions for many of your divorce issues, made while you and your spouse are in love, which may result in a less stressful divorce.
