A Prenuptial Agreement May not be Romantic, but it is Essential!
Did you know that before a millennial couple says “I do,” they are increasingly saying “prenup”? This is what an article published by CNBC in 2016 had to say. Having more to protect in the event of a divorce, millennials are entering into marriage later in life than their parents, and with their eyes wide open. The article went on to say that there has been a five-fold increase in prenuptial agreements over the past 20 years.
Earlier, prenups were believed to be a useful tool for the high-income group, to keep their assets safe, in case their marriage ended up in divorce. However, given the amount of financial burden an individual might incur when trying to win a legal battle regarding ownership of property, people of all income groups are taking a second look at prenups.
Prenuptial Agreements are Plagued by Misconceptions
Although nuptial agreements offer a lot of benefits, not every couple agrees with the idea of signing a prenuptial agreement before signing their marriage certificate. They believe that taking into account property and financial distribution, based on the possibility of a separation or divorce, is a huge romance and relationship killer. In fact, an article published by The New York Times said that if a couple is more interested in a prenup, they are least interested in getting married. The article went on to say that marriages based on an other-centered approach, where an individual places the needs of their spouse prior to their own, even if it involves money are unlikely to end in divorce.
Hopelessly romantic couples, who visualize long strolls along the beach in the moonlight or candle lit dinners for the rest of their lives, believe that discussing finances before entering into a commitment depicts insecurity and fear associated with the relationship. It will sooner or later impact their relationship, sweeping away the beautiful time that they could have otherwise enjoyed together.
However, what they fail to realize is that a marriage is not only a romantic partnership but a financial partnership too. What will happen if, God forbid, your relationship ended up in a divorce or the death of a spouse?
Need for a Prenup
According to the facts published by Brandon Gaille, in 2017, 15% of the people who have been through a divorce regretted not having a prenuptial agreement in place. In addition, more than 40% people who haven’t gotten married yet find the idea of having a prenup before entering into a marriage a good option.
With more than half of all marriages in the US ending up in divorce, and the cost and pain associated with coming to terms regarding the distribution of assets with one’s ex can be torture. And there is no guarantee that the court will rule in your favor, even after all the effort and expense you have borne.
With a prenuptial agreement, you can determine the financial payments you will need to bear both in case of property settlement and alimony, if your marriage doesn’t work out. Everything is documented legally, leaving no scope for any kind of discrepancy, reducing the reasons for conflict during a divorce.
Prenuptial agreements also become important if both spouses are business partners as well. Even if according to a prenuptial agreement, a partner needs to spell out a sum of money to be given to his/her spouse in lieu of any ownership stake, one can be assured that their own ownership will be protected.
Experts at Ruvolo Law believe that a prenuptial agreement is a great way for individuals to devote their energies to the marriage itself, instead of worrying about future legal ramifications in the event their marriage ends, whether due to divorce or death. However, the attorneys also suggest working with legal counsel to prepare and review prenuptial agreements to fully meet your needs, not only in the present but taking future possibilities into account, including responsibility for debts, such as credit cards, school loans and mortgages, as well as estate planning, along with money management and property rights.
