You might think that having a prenuptial agreement is only for the rich and famous. However, more couples are deciding to choose an arrangement like this before they get married. There is no doubt that a prenuptial agreement can be beneficial, but why would you want one? Here are a few reasons why you might need a prenuptial agreement.
Wealth is one of the reasons that most famous couples have a prenuptial agreement. Even though they might both be independently wealthy, there can still be arguments over money if nothing is agreed beforehand. If you happen to be wealthier than your partner, then this is a good reason to choose a prenup. Not only does it protect you if the worst happens, it also signals that your partner is marrying you for the right reasons and not just for your money.
Another reason that some couples choose a prenup is because they want to limit the amount of alimony that their partner gets after a divorce. It is especially common when one person is earning more money than the other. Although this might sound like an odd situation, it is a good way of setting these details when things are stable.
If Your Partner Has High Debt
If you are marrying someone that is carrying a lot of debt, then you might want to add a prenuptial agreement. It can help to protect you from being responsible for them if you get divorced. The same applies if you have bad debt, you might want to protect your partner from the responsibility.
When you Remarry
People who have been married before often come with their own sets of concerns including children, property or other obligations. If you were to pass away, those obligations or concerns might not be catered for, so you need a prenuptial agreement to organize the details. It might be especially important if your children for your previous marriage want to live with the other parent afterward.
Owning Part of a Business
Another popular reason for a prenup is when one of you has part ownership of a business. In the event of a divorce, the other partner could gain a share of the business which the others in the company might not like. It would also be awkward having your ex-spouse as a partner with you.
You Are Leaving Work to Raise Children
If you are planning to leave work to raise your children, then this can leave you in a more vulnerable position income and wealth wise. A prenup can ensure that both parties have joint financial responsibility for the children. A family law attorney who deals with the prenup will also recognize your contribution to the marriage by raising the family at home.
Although you don’t go into a marriage with thoughts of divorce, a little forward planning can make all the difference if things do go wrong. If there are children involved, then a prenup can make a lot of sense.