If you’re planning on getting married we encourage you and your partner to discuss whether a prenup, or prenuptial agreement is right for you. Here are several benefits of having a prenup:
1. It’s like insurance. Do your purchase car insurance with the intent of getting into a car accident? No. Just like you do not enter a prenuptial agreement planning on the marriage ending, it’s just an insurance policy in case something does happen, just like life, medical and homeowner’s insurance.
2. Debt protection. It is very common for couples to acquire some debt over the course of a marriage, typically from mortgages or credit cards. Debt in a divorce may be counted as marital property and be split between the two parties instead of being paid by the individual who acquired the debt. Prenups can help couples divide up bills and previously earned debt before getting married.
3. Protect your business, assets and inheritance. Long gone are the days when couples get married in their early twenties with nothing but the clothes on their back and their parent’s blessing. Now couples tend to wait until they’re older and established in their career to get married or even marry multiple times; meaning that they have individually acquired assets such as a business, stock and investments or even an inheritance or family heirloom. In the event of this prenups can help you ensure that your business and assets are not a causality of the divorce.
4. Help set future financial responsibilities. One thing prenups are great at is they get couples to discuss finances before they’re married and already committed. Some prenups include personal clauses, such as a fidelity clause where if the marriage ends because of cheating, the cheating partner will forfeit a claim to the communal assets. Additionally, you can add clauses that dissolute your financial responsibility if your partner made a significant financial decision, such as buying a car, without consulting you.
Platt Hopwood has a last piece of advice regarding prenups; make sure you give a trusted family member or friend a copy of your prenup. In the unfortunate event of a death in the marriage a prenup is superior to a will in most cases and the guidelines of your prenup will be followed before your will.
Writing a prenup is a challenge for many couples and we strongly recommend that you retain a competent attorney to draft the document. Every couple is different, and every prenup should be unique to the couple. Contact Platt Hopwood to schedule your free consultation and begin drafting your prenup.