Nothing can kill romance faster than the word prenup. But with almost one in three of all first marriages ending in divorce, and about fifty percent of second or third marriages coming to a halt, a prenuptial agreement is a smart way to protect yourself and your finances according to financial experts.
A prenuptial agreement (premarital agreement). is a contract between two people about to wed that spells out how assets will be distributed in the event of divorce or death. Such agreements have existed for thousands of years in some form or another are the purpose is to protect your wealth. Although not very romantic, having a prenuptial agreement prior to a wedding ceremony can be a very positive experience.
One does not have to be Bill Gates or overtly wealthy to be in need of a prenuptial agreement. If you have any of the following, you should consider having a prenuptial agreement:
- You have assets: Home, stock, retirement funds, etc.
- Own all or part of a business.
- You are receiving an inheritance.
- You have children or grandchildren from a previous marriage.
- You are much more wealthy than your spouse (or vice versa).
- You are supporting your spouse through college or other educational advancements.
- You have loved ones who need to be taken care of (elderly parents, sick family members, etc).
- You are about to become part of a lucrative profession such as nursing, medicine, law, etc.
- You own a business that is prospering more and more.
- You have a creative mind that is about to copyright “the next big thing.”
More and more couples are signing prenuptial marriage agreements before they marry. These are not just couples dealing with financial inequality, or couples who have a lot of wealth. These are couples who want to put all their financial cards on the table before they walk down the aisle.
A prenuptial marriage agreement is a signed and notarized contract that spells out how a couple will handle the financial aspects of their marriage. Some believe that by signing into a prenuptial agreement the couple is anticipating getting divorce; that is not true. If you are considering such an agreement and your spouse does not want to enter into the agreement, be sure to step back from the picture and take a closer look. What are you missing? Why won’t the person you love be willing to protect themselves and the one they love?