When you consider all the details that a newly engaged or married couple needs to take care of, signing a prenup certainly doesn’t rate as one of the most glamorous tasks. However, it can be one of the most essential for protecting your financial future.
Signing a prenup might feel like you’re condemning the relationship to failure right from the beginning, but it actually helps you consider financial issues and set a foundation that ensures you both are protected for the future.
What is a prenup used for?
A prenup is a legal document that determines how finances will be split if the marriage ends. It may also include details about the division of property, accumulated debt and any other common terms of a divorce besides child custody and child support.
Who should get a prenup?
Really it’s up to you if you think it makes sense to get a prenup. Some common reasons for deciding to get one are:
Experience: One partner has been involved in a divorce before and is familiar with the added complications, time and effort involved in reaching an agreement without help from a prenup.
Financial Disparity: If the marriage partners enter their union with significantly differing assets or debt then a prenup can help define responsibilities so that a divorce wouldn’t overly punish one or the other.
Business Ownership: A prenup can dictate what will happen with a business if the marriage ends, rather than blur the lines and put the future of the business at risk.
Confidentiality: The prenup will clarify a number of issues and prevent those details from needing to be spilled out into public knowledge. There may also be terms written into the prenup that make it clear that a partner cannot share certain information in the event of the divorce.
Short-Term Engagements: A prenup may be necessary in the event of a whirlwind relationship that leads to a quick wedding. While the marriage could indeed be a happy and long one, the prenup provides insurance in case the romance doesn’t last.
Working Responsibilities: If one partner plans on staying at home to raise a family while the other continues with their career then it may be necessary for them to prepare terms to protect their financial interests if they suddenly lose their chief provider of support.
If you want to explore more information about how a prenup can help you or if you want to go ahead and complete a prenup, contact Epstein & Associates. We’re very familiar with all of the steps and processes involved and can give you critical advice to help protect your legal and financial interests.