What is the purpose of a prenuptial agreement and how do I know if I need one?

Whether we want to think about it or not, divorce happens, and while the divorce rate in America has been falling slightly in recent years, the fact remains that over one and a half million people choose divorce each year. The process can be messy, with couples disagreeing over the division of wealth and property. These contentious moments can be somewhat avoided if a prenuptial agreement is put in place. A prenup is a legally binding document that couples create before they become married, and it contains rules and provisions that can complicate any number of issues in the event of a divorce.

If you are engaged and approaching your marriage date, you may be wondering if a prenuptial agreement is the right thing for you and your spouse. Many people want to avoid having the discussion, often because they believe that they would be setting their marriage up for failure even before it begins. That does not mean that a prenup is not a worthwhile contract to enter into; on the contrary, if couples are willing to think of it as an insurance policy for their marriage it can become more palatable. This article will outline the reasons why you might want a prenup, and offer an assessment of whether it is the right thing for you.

The Purpose of a Prenuptial Agreement

Prenups can define a series of marital concerns, while also creating provisions in the event that a divorce occurs. A prenup can establish protections for the following concerns:

● It can create safeguards for assets you accumulated prior to getting married, while also detailing what you would want done with them.
o One example: in the event of your death, your prenup can determine how much of an inheritance your spouse or children will get.

● You can create separate boundaries for your debts and individual funds.
● A prenup can include a waiver for spouses which would exclude them from being beneficiaries to your retirement plans, while naming someone else (like your children).
● It can create roles and responsibilities for different household or financial obligations while also creating some financial autonomy. One such example is whether or not couples want separate or joint bank accounts.
● If there is a significant age or financial difference between spouses, then a prenup can set boundaries for how assets are distributed in the event of a divorce.

Viewing these protections for what they are — that is, safeguards for individuals in the legal contract of marriage — can destigmatize the notion of what a prenuptial is, and what it can offer. The purpose of a prenup, in many ways, protects two individuals from a number of unforeseen circumstances.

Is a Prenup Necessary for You?

Our culture would have us assume that prenups are only for the wealthy, but that does not have to be the case. As previously mentioned, prenups can offer a number of protections to individuals, and you should consider getting a prenup if any of the following conditions apply to you:

● You have children from a previous marriage
● You want to clarify your financial rights and responsibilities during your marriage
● You want to avoid potential arguments should you get a divorce, resolving issues like alimony or child support
● You or your spouse possess significant debts

To have a valid prenup, one that will preserve these protections in court, you and your spouse should retain a family law attorney to help you draft and file your prenuptial agreement.